Gufic BioScience (GUFICBIO)
TurnaroundFairStock Score: 16/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹422.2 |
| Market Cap | ₹4,233.93 Cr |
| P/E Ratio | 65.76 |
| ROCE | 13.15% |
| ROE | 8.8% |
| Dividend Yield | 0.02% |
| Profit Growth | 86.03% |
| Debt/Equity | 0.61 |
| Sales Growth | 14.69% |
| Promoter Holding | 72.5% |
| 52-Week Range | ₹268 — ₹466.05 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹66.2 |
Strengths
- High promoter holding of 72.50% aligns management with shareholders
- Sales growth of 11.37% shows business is expanding
- Debt/equity of 0.58 is manageable, not overly leveraged
- ROCE of 13.15% exceeds ROE, indicating some operating efficiency
Concerns
- P/E of 56.74 with profit down 35.68% makes valuation very expensive
- ROE of 8.80% is weak for a stock trading at 5.09 times book value
- Piotroski F-Score of 4/9 suggests deteriorating financial health
- Dividend yield of 0.04% offers negligible downside support
AI Analysis
At ₹296.50, Gufic BioScience is not the kind of business I would ordinarily spend time on. A P/E of 56.74 for a company whose profit has fallen 35.68% is not value; it is hope. Sales growth of 11.37% is respectable, but it is not translating to the bottom line. The latest quarter net profit of ₹12 Cr on sales of ₹231 Cr implies a net margin of roughly 5%, and the return on equity at 8.80% is far below what I would demand for a business trading at 5.09 times book value. With book value at ₹58.20, the market is paying five rupees for every rupee of equity despite mediocre returns. The Piotroski F-Score of 4 out of 9 hints at worsening fundamentals. ROCE of 13.15% is passable but not a wide-moat signal. Debt/equity of 0.58 is manageable, and promoter holding of 72.50% does align interests. But with a dividend yield of only 0.04%, you are not paid to wait. A PEG of 4.99 confirms that the growth premium is unjustified. In Graham's language, price is what you pay, value is what you get. At this price, I do not see enough margin of safety. This may become a turnaround if management restores margins, but the 52-week range of ₹268 to ₹448 shows how far the stock has fallen. Catching a falling knife is not investing. I need stronger profitability, consistent cash generation, and a lower valuation before I would act. Until then, I remain on the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer