This small-cap pharma stock has a unique process for manufacturing intermediates!

The stock surged 10.78 per cent today.

Shares of Gujarat Themis Biosyn Limited have surged 10.78 per cent and closed trading at Rs 842.3. The stock opened at Rs 760.05 and made an intraday high and low of Rs 860.8 and Rs 760.05, respectively.   

Gujarat Themis Biosyn Limited is involved in the business of manufacturing intermediates by the fermentation process. It is one of India’s few fermentation-based pharmaceutical manufacturers and the country’s first company to start commercial production of the Antibiotic – Rifampicin. 

Fermentation-based intermediate manufacturing reduces the time taken and cost of production. Instead of producing through a traditional synthetic approach, natural molecules are produced through fermentation technic to reduce toxicity, increase potency and selectivity, and overcome bacterial resistance to traditional antibiotics.   

GTBL currently manufactures two products, Rifamycin S and Rifamycin 0. Rifamycin S is an intermediate used in the production of the drug rifampicin, an antibiotic used to treat a variety of bacterial infections, such as leprosy, mycobacterium avium complex, tuberculosis, and Legionnaires’ disease. Rifamycin O is an intermediate used in the production of the drug Rifaximin, an antibiotic used to treat hepatic encephalopathy, irritable bowel syndrome, and traveller’s diarrhoea. 

GTBL has only one manufacturing plant located in the Vapi district of Valsad, Gujarat. The plant has an installed capacity for manufacturing 10,000 KG Rifamycin S per month and 6,000 KG Rifamycin O per month. 

The Q2FY23 was the highest-ever quarter in terms of revenue and net profit generation. Q2 FY23 revenue stood at Rs 48 crore, 37 per cent YoY growth. For the same quarter, net profit increased 35.7 per cent YoY and came in at Rs 19 crore. 

The company has a market capitalisation of Rs 1220 crore and is currently trading at 20x PE.