Comments: 0 | Likes: 1 | Current Price: ₹ 690
Shree Ganesh Remedies Ltd: Navigating Pharmaceutical Frontiers with Precision
Shree Ganesh Remedies Ltd, an innovative force in pharmaceutical intermediates since 2004, marked a 25% QOQ revenue rise in Q2FY24 with a ₹779 Cr market cap. Its global presence across 15 countries and specialized expertise in 32+ products position it strategically in a projected US$ 52.6 billion industry by 2030.
Introduction:
In the dynamic landscape of pharmaceutical intermediates and specialty chemicals, Shree Ganesh Remedies Ltd (SGRL) emerges as a beacon of innovation and growth. Established in 2004, this micro-cap company has strategically positioned itself in a market poised for significant expansion. Let's delve into the key aspects of SGRL's journey, from robust Q2FY24 results to its global presence and strategic milestones.
Key Company Information:
- Incorporation: 2004
- Core Focus: Pharmaceutical Intermediates, Fine & Specialty Chemicals
- Market Cap: ₹779 Cr
- ROCE: 24.7%
- ROE: 22.6%
- 3 Years Sales Growth: 15.6%
Business Segments:
1. Pharmaceuticals Intermediates: Offers 32+ products with ₹54 Cr sales in FY23.
2. Human Pharma Segment: Covers Antipsychotic, Antidepression, Oncology, Diabetic, Diuretic.
3. Veterinary Health: Includes Feed Additives, Antiparasitic, Anti-Inflammatory.
4. Fine and Specialty Chemicals: Offers 11+ products contributing ₹37 Cr in sales for FY23.
Revenue Breakup (FY23):
- Human & Veterinary Health: 59.39%
- Fine & Specialty Chemicals: 40.61%
Geographical Breakup (FY23):
- India: 31.4%
- Others: 68.6%
Chemistry Expertise and Innovation:
- Specializes in 10 reaction technologies.
- Focuses on manufacturing niche products with higher margins and less competition.
- Commercialized 2 new products in FY23.
- Implemented Carbon-Carbon coupling chemistry technology for European companies under the CDMO model.
Manufacturing Facilities:
- Two manufacturing units with a total production area of 403,500 sq ft.
- Equipped with 25 glass-lined reactors, 9 plant blocks (with 2 upcoming), 23 stainless steel reactors, and 3 autoclave reactors.
- Diverse reaction capabilities, including high-pressure reactions and various temperature ranges.
- New land acquired nearby to the existing facility of 20000+ Square meter
Global Presence:
- Serves customers in 15 different countries, spanning North America, Europe, Asia, Australia, and others.
Key Milestones:
-2004: Foundation of Shree Ganesh Remedies Ltd (SGRL).
- 2011: Special recognition award by MSME Secretary Shree Madhavlal (IAS).
- 2018: Unit-1 Plant-5 commissioned and made operational.
- 2022: Conceptualization of two new manufacturing blocks.
- 2023: High-pressure reaction block commissioned catering to niche chemistries.
Key Customers:
- Dr. Reddy
- Arti Industries Ltd
- IOL Chemicals and Pharmaceuticals Ltd
- Sun Pharma
- Laurus Labs
- Dipharma, and others.
Business Updates:
- GMP Plant received Indian FDA License approval.
- Successful trial runs in the Pilot Plant in Q2 FY24.
- Completion of the specialty chemicals CRAMS project with commercial trials underway.
- Advancements in the agrochemical CRAMS Project.
Q2FY24 Financial Highlights:
- Revenue from Operations: ₹33.42 Cr (Up 25% QOQ and 73% YOY).
- Operating Profit: ₹9.23 Cr (Up 36% QOQ and 73% YOY).
- PAT: ₹6.55 Cr (Up 38% QOQ and 66% YOY).
- EPS: ₹5.12 (Up 38% QOQ and 66% YOY).
Industry Outlook:
- The Global Pharmaceutical Intermediates Market is projected to reach US$ 52.6 billion by 2030, driven by a CAGR of 6.3%.
- Increasing chronic diseases and the higher incidence of contagious diseases will drive up the demand for APIs and intermediates.
Management:
Analysis:
In the last 10 years, the company's profit CAGR of 28%, similarly company's sales also grew their sales 22% CAGR. from last 10 years, and the company also delivered RoE of more than 20%. Since management is quite focused and the company also deals with industry leaders, that lead to high stickyness in the business. Even in the last half year company exports grew by 22% and domestic sales grew by 221%. the consistent delivery of strong numbers and high-quality management with increased demand lead to the high potential of the company going forward. since the base of this company is quite small, the exponential growth is possible with this.
Conclusion:
Shree Ganesh Remedies Ltd, with its focused approach, innovative strides, and global footprint, is navigating the pharmaceutical landscape with precision. As the global API intermediate market gears up for substantial growth, SGRL stands poised to play a pivotal role in shaping the future of pharmaceuticals and specialty chemicals. A micro-cap with macro ambitions, SGRL exemplifies resilience and strategic vision in a sector marked by evolution and expansion.
I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.
I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.
Articles
Comments
