GTBL is engaged in manufacturing of APIs namely Rifamycin S
and Rifamycin O. The company’s manufacturing plant is located in
Vapi, Gujarat.
The company has installed capacity for manufacturing 10,000 Kg Rifamycin C per month and 6,000 Kg Rifamycin O per month.
(2/18)
Rifamycin S
It is an intermediate for manufacturing drug Rifampicin (Antibiotic used for treatment of several types of bacterial infections, including tuberculosis, Mycobacterium avium complex, leprosy, and Legionnaires’ disease).
(3/18)
Rifamycin O:
It is an intermediate for manufacturing drug Rifaximin (Antibiotic used for treatment of traveller’s diarrhoea, irritable
bowel syndrome, and hepatic encephalopathy). These are niche products.
The average capacity utilisation ranges between 60-70% p.a.
(4/18)
Growth in Pharma Sector:
The Indian pharmaceutical industry ranks 3rd globally for pharma production by volume & 14th by value.
It is forecast to grow at a CAGR of 22.4% in the near future, and reach US$130 billion by 2030.
(5/18)
The nation has been a well established domestic industry and is one of the largest producers of vaccines worldwide.
With rising income levels, growing health awareness & better access to healthcare, Indian market offer significant growth potential for the pharma industry
(6/18)
Budget 22:
• National Digital Health Ecosystem rolled out
• National Tele Mental Health Programme launched for quality counselling
• Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0
• Two lakh Anganwadis to be upgraded to Saksham
Anganwadis
(7/18)
Experienced promoters:
GTBL is actively managed by promoters of TML since 2007. Dr. Dinesh Patel who is the Executive
Vice Chairman has Ph.D in Medicinal Chemistry by qualification.
Furthermore, the promoters are supported by well qualified & experienced 2nd tier mgmt.
(8/18)
Raw material sourcing and accredited manufacturing facilities:
The key raw material for GTBL is Rifabutin which is sourced through domestic market. The company has long standing relationship with its suppliers thereby ensuring timely supply of key raw material.
(9/18)
Healthy profit margins:
Prior to FY20, company was engaged in contract manufacturing of Rifamysin S for Lupin Limited. Then the management changed business model from contract manufacturing to manufacturing & sales model which resulted in improved OPM
(10/18)
Comfortable capital structure:
GTBL has no reliance on external debt to fund its business operation. Its overall gearing is 0.01 times vs 0.07 YoY on account of increase in net worth base with accretion of healthy profit to reserves & decline in total debt.
(11/18)
Weaknesses:
Moderate scale of operations:
GTBL’s scale of operation grew by 27% to ₹114.86 crore in FY22 vs ₹90.56 crore in FY21.
This scale of operation limits its bargaining power with the suppliers and also makes it difficult to compete with bigger players
(12/18)
Working capital intensive:
GTBL’s operation remained working capital intensive mainly on
account of funds stuck in inventory and debtors.
Therefore, operation remained working capital intensive and
working capital requirement is met through internal accruals.
(13/18)
Project funding:
GTBL is setting up R&D department at its existing plant Vapi. Estd cost of the project is ₹32 cr and is to be funded through internal accruals and complete by december 22.
This should be monitored for any delays or cost over run.
(14/18)
Customer and supplier concentration risk:
The company caters to only two customers i.e. Lupin Ltd& Optrix Laboratories. The company has ‘take or pay’ agreement with Optrix which is renewed annually & has 5 year contract with Lupin.
It is working to get more clients.
(15/18)
Further, the supplier profile of the company also remained concentrated with top 10 suppliers contributing 79% of the total purchases in FY22 vis-à-vis 61% of the total purchases in FY21.
(16/18)
Liquidity: Adequate
The liquidity position remained adequate marked by sufficient cushion in accruals vis-à-vis repayment obligations and adequate free liquidity in the form of fixed deposit of ₹50 crore as on July 28, 2022.
The Company has good margins and an ample runway, however it’s high client concentration is a matter of concern. And it should ideally add more customers to mitigate the same in the near future. @caniravkaria@kuttrapali26@chartmojo
• • •
Missing some Tweet in this thread? You can try to
force a refresh
GEL is engaged in manufacturing and exporting of readymade garments for men, women, and children and caters to the needs of several leading international fashion brands and retailers.
It has more than 20 manufacturing facilities, primarily in & around Bangalore.
(2/20)
In fiscal 2018, Clear Wealth Consultancy Services LLP, led by Mr. Mathew Cyriac, acquired a 39.94% stake in the company from Blackstone FP Capital Partners (Mauritius) VB Subsidiary Ltd which reduced to 23.66% post QIP infusion in October 2021 and currently is at 20.97%