Ranvir’s Portfolio

Gufic Bio Company overview and Q1 FY 24 review –

Geographical revenue breakup (aprox)-

Domestic formulations – 50 pc
International formulations – 13 pc
CMO – 28 pc
APIs – 9 pc

Domestic business break up –

Critical care – 52 pc
Infertility division – 23 pc
Others – 27 pc

Critical care division-

Making a comeback post inventory liquidation in late 2022 & early 2023

Company has presence across 6000 hospitals with 92 molecules

Company to soon launch of Delbavancin (used against acute bacterial skin infections)-first company to launch it in India

Fertility Division-

Recently launched Human Menopausal Gonadotropin(HMG) – used to boost success in IVF cycles. Trials are on to establish company’s product efficacy vs Intl Mkt Leader

High growth continues in Dydrogestrone

Q1 FY 24 business highlights –

Gufican and Gufibis Oils ( orthopaedic oils for pain relief ) continue to gain Mkt share – can experience substantial growth going fwd

Successfully launched Zinc Based multivitamin tablets. Getting good Mkt response

Successful completion of split face trials of Stunnox (Botulinum Toxin – used in Chronic migraine, Spastic disorders etc) against the Mkt leader have yielded remarkable results – instilling confidence in the Doctors

Company Infrastructure –

Field force > 1000 ppl

Has one of the largest Lyophilisation capacities in India for CMO

Makes in-house APIs in- anti-fungal, Anti-biotic and Anesthetic therapies

International business spread across 20 countries – Europe, LATAM

Manufacturing facilities-02 at Navsari, 01 at Belgaum, 01 at Indore

Last 4 yr finances –

Sales CAGR – 18 pc
EBITDA CAGR – 31 pc ( margins up at 19.9 from 13.1 pc in FY 19 )
PAT CAGR – 38 pc ( margins up at 11.5 from 5.4 pc in FY19 )

Q1 FY 24 outcomes –

Sales – 195 vs 165 cr
EBITDA – 36 vs 33 cr (margins @ 18.6 vs 20.3 pc)
PAT – 21 vs 21 cr

Delbavancin – can be a good molecule as it has wide usages before Ortho / Cardiac surgeries. Priced in India at 1/5th the International prices. Can be a good revenue driver in 3-4 yrs in India

Can also be launched quickly in Intl Mkts

Dual Chamber Bags launch scheduled in Q2

Indore facility Capex to go live in Q3 FY 24 – should be a nice tailwind for CMO business

Share of exports in total sales currently at 18 pc of sales

Margin compression in Q1 due increased R&D expenses in Q1

Likely to grow 15-20 pc in topline, EBITDA this yr (bare – minimum)

Likely to maintain 19-20 pc EBITDA margins this yr

Disc: not invested. Intend to buy. Biased. Not SEBI registered