Q4 PAT UP 435%/FY20 PAT UP 370%
Gujarat Themis Biosyn Ltd ( only BSE): TP 350
PERHAPS HIGHEST PROFIT MARGIN IN API INDUSTRY
GTBL Financials:
1) FY 19: Sales 43.25 Cr PAT 6.41 Cr EPS Rs 4.41
2) FY 19-20:
Q1. Q2. Q3
Sales. 12.40. 17 30.77
PBT 1.97. 1.97. 14.50
PAT. *1.41 1.60. 9.71*
3) *Q4FY20: Sales 26.63 Cr PAT 10.95 Cr. EPS Rs 7.54* (12.26 Cr Sales 2.51 Cr PAT)
4) FY20; Sales 87 Cr PAT 23.67 Cr EPS Rs 16.30. Maiden Div Rs 3.3/share
Equity 7.26
GTBL was set up in Financial and Technical collaboration with Yuhan Corpn S Korea. Promoters jointly hold 75%
GTBL is engaged in production of Anti-TB drug Rifampicin. *After Lupin, GTBL is only co in India using fermentation process Until Q2FY20, GTBL was doing contract manufacturing for Lupin. Hence all these years, had average ( rather lackluster) Financials as Lupin gave fixed margin irrespective of market price. In 2019, market price of Rifampicin started rising exponentially. Hence GTBL decided to *stop contract manufacturing for Lupin and do own marketing from Q3 as market price of Rifampicin rose 300%*. As a result, for Q3 Sales rose to 30.77 cr ( vs 9.81 cr) and PAT soared to 9.71 Cr ( Vs 1.21 Cr). Q3 EPS Rs 6.68
FUTURE OUTLOOK/Covid Effect: GTBL plant was closed only for 20 days in April and co hopes to make up for lost production in coming months. Market for Rifampin continues to be robust. DenofWealth estimates that GTBL can report Sales of 120 cr , PBT 46 Cr and PAT of 36-38 Cr translating in EPS of Rs 25
*,Stock is tdg @ 7.80xFY21Eeps*
GTBL is planning capacity expansion. Impact of same will be felt in FY22 leading to much higher Financials
Small Equity
High Promoter stake
Bright outlook