Gujarat Themis Biosyn Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹372.00+₹1.95 (+0.53%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Gujarat Themis Biosyn Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gujarat Themis Biosyn Limited engages in the manufacture of pharmaceuticals, medicinal chemicals, and active pharmaceutical ingredients in India and internationally. The company offers bulk drugs on job work basis in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Annual revenue₹166 Cr

How does it make money?

Turns over ₹166 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹47 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +12% while net margin moved -28% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+12%

Margin effect-28%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.8% — barely ahead of inflation
✗ Profit has declined at 7.0% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

32/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

83.2x

2Y Median

84.6x

22 monthly readings · mean 77.1x · range 40.3x–103.8x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 2y median of 84.6x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 150% above the peer median of 33.3x.

vs. its own history

Fair

84.6x median over 22 months · -2%

vs. sector peers

Expensive

33.3x median of 4 peers · +150%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

63.7x

PEG

3.63

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 38.9% to 16.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 51.3% to 15.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 38509% over 3 years, from ₹0 Cr to ₹162 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.8 points, from 54.1% to 47.3%.
🔴Receivables growing faster than salesFinancial
Receivables up 240% against revenue up 12% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 54.1% to 47.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 240% against revenue up 12%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 150% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 3.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 38.9% to 16.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 45%✓ 47.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹124 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 4% a year✗ 3.8% CAGR
Latest reported year was 22.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 12%✓ 15.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹4,842 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

83.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

14.09x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹4.47

Profitable

Profitable on a per-share basis

ROE

16.2%

Strong

Strong capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.56x

Low

Conservative leverage

Revenue Growth (YoY)

22.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.18%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹124 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

38.4%

Good

Healthy core-business profitability

Net Margin

28.0%

Good

Strong bottom-line conversion

Current Ratio

1.12

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

390.8 / 394.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹148 Cr	₹170 Cr	₹151 Cr	₹166 Cr	+3.8%
EBITDA	₹80 Cr	₹84 Cr	₹71 Cr	₹78 Cr	-0.7%
EBITDA Margin	54.1%	49.2%	47.3%	47.3%	—
PAT (Net Profit)	₹58 Cr	₹59 Cr	₹49 Cr	₹47 Cr	-7.0%
EPS	₹5.32	₹5.43	₹4.48	₹4.28	-7.0%
ROE	38.9%	29.4%	19.6%	16.2%	—
ROCE	51.3%	38.8%	23.4%	15.5%	—
Total Debt	₹0 Cr	₹3 Cr	₹30 Cr	₹162 Cr	+628.2%
Free Cash Flow	₹16 Cr	-₹10 Cr	-₹25 Cr	-₹124 Cr	—

🟢 Revenue has grown at 3.8% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.7% a year).

🔴 EBITDA Margin has fallen from 54.1% to 47.3% over 3 years (-6.8 pts).

🔴 PAT (Net Profit) has shrunk at 7.0% a year over 3 years.

🔴 EPS has shrunk at 7.0% a year over 3 years.

🔴 ROE has fallen from 38.9% to 16.2% over 3 years (-22.6 pts).

🔴 ROCE has fallen from 51.3% to 15.5% over 3 years (-35.9 pts).

🔴 Total Debt has grown at 628.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹16 Cr to -₹124 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹503 Cr

Total Liabilities

₹216 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹49 Cr

Capex

-₹173 Cr

Shareholding (proxy)

Institutional Holding

11.8%

Insider Holding

63.7%

Corporate Actions

Dividend Rate

₹0.67

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

1 positive3 mixed2 general

Sachin Patel to acquire 5.25 lakh shares in Gujarat Themis Biosyn

scanx.trade, 18 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Gujarat Themis Biosyn Limited (GUJTHEM.NS) stock price, news, quote and history

Yahoo Finance UK, 16 Oct

Gujarat Themis Biosyn Ltd Upgraded to Hold on Technical Improvements and Financial Stability

MarketsMojo, 15 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Gujarat Themis Biosyn vs Nifty 50: Returns Compared

Univest, 25 Sept

Gujarat Themis Biosyn's (NSE:GUJTHEM) Anemic Earnings Might Be Worse Than You Think

Simply Wall Street, 01 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

40% Jump In Six Months: Gujarat Themis Biosyn Share Price Rises Over 4% In Trade. Here's Why

NDTV Profit, 31 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Risk

WeakGrowth · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑