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Check Before You Invest : Gufic Biosciences Ltd

BSE: 509079 NSE: GUFICBIO ISIN: INE742B01025
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Gufic Biosciences Ltd belong to?
Gufic Biosciences Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Gufic Biosciences Ltd a good quality company?
Gufic Biosciences Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Gufic Biosciences Ltd undervalued or overvalued?
Gufic Biosciences Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 57.03 35.97
Price to Book 4.48 6.81
Price to Sales 3.23 3.57
EV to EBITDA 23.23 22.22
Q.4 Is Gufic Biosciences Ltd a good buy now?
Gufic Biosciences Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Gufic Biosciences Ltd?
Gufic Biosciences Ltd revenue growth is 1.6% for FY-2025, which is below its 5-year CAGR of 16.69%, indicating slower growth.

Q.2 Gross Profit margin of Gufic Biosciences Ltd?
Gufic Biosciences Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.5% for FY-2025, which is below its 5-year median of 14.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Gufic Biosciences Ltd?
Gufic Biosciences Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.92% for FY-2025, which is below its 5-year median of 18.55% indicating decreasing margins.

Q.4 Net Profit Margin of Gufic Biosciences Ltd?
Gufic Biosciences Ltd Net Profit Margin is 8.53% for FY-2025, is below its 5-year median of 10.68%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.5 14.3
Operating Profit Margin (%) 16.92 18.55
Net Profit Margin (%) 8.53 10.68

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gufic Biosciences Ltd?
Gufic Biosciences Ltd Return on Asset is 6.18%, which is below its 5-year historical median of 10.71%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gufic Biosciences Ltd?
Gufic Biosciences Ltd Return on capital employed is 13.51% for FY-2025, which is below its 5-year historical median of 23.23%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Gufic Biosciences Ltd?
Gufic Biosciences Ltd Return on equity is 12.34% for FY-2025, which is below its 5-year historical median of 25.84%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Gufic Biosciences Ltd?
Gufic Biosciences Ltd Cash conversion cycle is 83 days, above its 5-year historical median of 55 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.97 1.16
ROE (%) 12.34 25.84
ROCE (%) 13.51 23.23
Cash Conversion Cycle 83 days 55 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Gufic Biosciences Ltd?
Gufic Biosciences Ltd Debt-to-Equity ratio is 0.52, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Gufic Biosciences Ltd?
Gufic Biosciences Ltd Debt to cash flow from operations is 2.53, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Gufic Biosciences Ltd?

Q.1 Promoter shareholding and pledge status of Gufic Biosciences Ltd?
Promoters hold 72.50% of the Gufic Biosciences Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gufic Biosciences Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gufic Biosciences Ltd vs industry peers?
Gufic Biosciences Ltd revenue CAGR is 16.69%, compared to the industry median CAGR of 5.35%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 1.6 5.4
Gross Profit Growth (%) -13.5 14
Operating Profit Growth (%) -7.5 11.5
Net Profit Growth (%) -18.6 12
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.97 0.79
ROE (%) 12.34 9.17
ROCE (%) 13.51 11.52
Cash Conversion Cycle (days) 83.27 76

Valuation & price assessment

Q.1 Stock return of Gufic Biosciences Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 21.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
21.8% 7.6% 11.6% -24.4%
Q.2 Valuation ratios of Gufic Biosciences Ltd vs historical?
The current P/E ratio of 57.03 is higher than its historical median of 35.97, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 57.03 35.97 31.09
Price to Book 4.48 6.81 2.85
Price to Sales 3.23 3.57 2.82
EV to EBITDA 23.23 22.22 15.99

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