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Check Before You Invest : Gujarat Themis Biosyn Ltd

BSE: 506879 NSE: GUJTHEM ISIN: INE942C01045
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Gujarat Themis Biosyn Ltd belong to?
Gujarat Themis Biosyn Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Gujarat Themis Biosyn Ltd a good quality company?
Gujarat Themis Biosyn Ltd is a good quality company, based on a consistently good 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 Gujarat Themis Biosyn Ltd undervalued or overvalued?
Gujarat Themis Biosyn Ltd appears Overvalued, as its key valuation ratios are higher 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 81.43 26.38
Price to Book 14.05 9.05
Price to Sales 24.42 9.54
EV to EBITDA 52.62 18.78
Q.4 Is Gujarat Themis Biosyn Ltd a good buy now?
Gujarat Themis Biosyn Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd revenue growth is -11.2% for FY-2025, which is below its 5-year CAGR of 12.12%, indicating slower growth.

Q.2 Gross Profit margin of Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd Gross profit margin which is the profit after deduction of direct costs, is 47% for FY-2025, which is in line with its 5-year median of 48.8%, indicating stable margins.

Q.3 Operating Profit Margin of Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 45.65% for FY-2025, which is in line with its 5-year median of 46.38% indicating stable margins.

Q.4 Net Profit Margin of Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd Net Profit Margin is 32.34% for FY-2025, is below its 5-year median of 34.84%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 47 48.8
Operating Profit Margin (%) 45.65 46.38
Net Profit Margin (%) 32.34 34.84

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd Return on Asset is 17.44%, which is below its 5-year historical median of 35.65%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd Return on capital employed is 27.48% for FY-2025, which is below its 5-year historical median of 61.51%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd Return on equity is 21.69% for FY-2025, which is below its 5-year historical median of 45.92%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd Cash conversion cycle is 26 days, below its 5-year historical median of 47 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.54 0.92
ROE (%) 21.69 45.92
ROCE (%) 27.48 61.51
Cash Conversion Cycle 26 days 47 days

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

Q.9 Debt to Equity ratio of Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd Debt-to-Equity ratio is 0.12, which is lower the industry average of 0.14, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Gujarat Themis Biosyn Ltd?
Gujarat Themis Biosyn Ltd Debt to cash flow from operations is 0.33, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gujarat Themis Biosyn Ltd?

Q.1 Promoter shareholding and pledge status of Gujarat Themis Biosyn Ltd?
Promoters hold 70.86% of the Gujarat Themis Biosyn Ltd, with 5.44% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gujarat Themis Biosyn Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gujarat Themis Biosyn Ltd vs industry peers?
Gujarat Themis Biosyn Ltd revenue CAGR is 12.12%, 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 (%) -11.2 5.4
Gross Profit Growth (%) -14.5 14
Operating Profit Growth (%) -12.7 11.5
Net Profit Growth (%) -17 12
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.54 0.79
ROE (%) 21.69 9.17
ROCE (%) 27.48 11.52
Cash Conversion Cycle (days) 26.24 76

Valuation & price assessment

Q.1 Stock return of Gujarat Themis Biosyn Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 45.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
45.9% 57.5% 50.3% 13.1%
Q.2 Valuation ratios of Gujarat Themis Biosyn Ltd vs historical?
The current P/E ratio of 81.43 is higher than its historical median of 26.38, 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 81.43 26.38 31.09
Price to Book 14.05 9.05 2.85
Price to Sales 24.42 9.54 2.82
EV to EBITDA 52.62 18.78 15.99

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