Company Overview

Krebs Biochemicals & Industries Ltd (formerly Krebs Biochemicals Ltd), promoted by R T Ravi and incorporated in 1991, is a specialized biotechnology company engaged in the manufacture of Active Pharmaceutical Ingredients (API) through fermentation processes. It is one of the few companies globally to achieve this through fermentation. The India-based company is dedicated to the business of manufacturing pharmaceutical ingredients, possessing unique capabilities in this niche. The company develops commercially viable biotech processes for application in medicine, agriculture, and industry.

Business Overview

Krebs Biochemicals & Industries Ltd is engaged in chemical synthesis, fermentation, and enzymatic technologies. The company manufactures bulk active pharmaceutical ingredients, pharmaceutical intermediates, fine chemicals, and nutraceuticals. It operates through two primary revenue streams: contract manufacturing for large pharmaceutical and multinational companies, and the development of its own products for sale in global markets.

The company commenced commercial operations in 1994 with an installed capacity of 60 TPA, which has since grown to 150 TPA. It went public with an IPO in 1994. In 2001-02, the company successfully launched Vitamin C (IP Grade) using a fermentation process.

Financial Performance and Market Position

Krebs Biochemicals & Industries Ltd has a market capitalization of ₹212 crore as per recent data. The company has faced financial headwinds, reporting a consolidated loss of ₹7.74 crore on a total income of ₹11.72 crore for the quarter ended March 2024. For the full year ended December 2024, the company posted a similar loss of ₹7.74 crore on a total income of ₹11.72 crore.

The company exhibits a negative profit margin, indicating current financial challenges. Despite these, its specialized niche and operational history suggest potential for recovery and growth.

Key Financial Metrics

- Q1 FY2023-24 Performance: Net Loss of ₹-7.74 crore, Total Income of ₹11.72 crore.

- Full Year FY2024 Performance: Net Loss of ₹-7.74 crore, Total Income of ₹11.72 crore.

- Market Capitalization: ₹212 Crore (As per recent data)

- Promoter Holding: 72.74% (As of Dec 2024)

- Trailing Twelve Months (TTM) Revenue: ₹43.3 Cr

- TTM Profit/Loss: ₹-26.9 Cr (Loss)

- Annual Revenue Growth: -13% (De-growth)

- Pre-Tax Margin: -62%

Business Operations and Production Capacity

Krebs Biochemicals & Industries Ltd operates two manufacturing facilities. One is located at Regadichelaka, Nellore District, and the other is at Kothapalli Village, Kasimkota Mandal, Visakhapatnam District, Andhra Pradesh, India. The company's registered office is situated in Kothapalli(V) Kasimkota(M), Anakapalli, Vishakapatnam, Andhra Pradesh. The operational history dates back to its commercial operations beginning in 1994 with an initial installed capacity of 60 TPA, which has since expanded to 150 TPA.

Product Portfolio and Market Strategy

The company manufactures a range of products, including:

- Androstenedione: Used as a steroid intermediate.

- Lovastatin: Used as an anti-cholesterol medication.

- Simvastatin: Also used as an anti-cholesterol medication.

Upcoming and R&D stage products include:

- Amlodipine

- Cetirizine

- Orlistat

- Telmisartan

- Serratiopepetidase

- Phenylephrine

Krebs Biochemicals & Industries Ltd's market strategy involves leveraging its expertise in contract manufacturing for global pharmaceutical giants, alongside developing and selling its proprietary products in international markets.

Stock Performance and Valuation

The Krebs Biochemicals & Industries Ltd's stock trades on the BSE and NSE under the symbol KREBSBIO (BSE: 524518, ISIN: INE268B01013).

- 52-Week High: ₹129.00

- 52-Week Low: ₹60.00

- Recent Performance:

- Last 1 Month: +8.30% on BSE

- Last 3 Months: +6.81% on BSE

- Last 12 Months: +32.92% on BSE

- Last 3 Years: -36.25% on BSE

The stock's current Price-to-Earnings (PE) ratio is -10.70, and its Price-to-Book (PB) ratio is -1.79, reflecting its current valuation context.

Shareholding Pattern

Promoter holding in Krebs Biochemicals & Industries Ltd has remained stable, standing at 72.74% as of December 2024, consistent with the 72.74% recorded in March 2024. This stable promoter confidence is a positive indicator for the company's long-term prospects.

Management and Leadership

The company was founded by Ravindranath Tagore Ravi on December 2, 1991.

- Chairman: R T Ravi

- Company Secretary: Keyur Doshi

- Headquarters: Hyderabad, India

Industry Position

Krebs Biochemicals & Industries Ltd operates in the specialized niche of pharmaceutical ingredient manufacturing, particularly focusing on fermentation-based processes, which gives it a unique positioning in the industry. It is recognized alongside peers such as Pharmaids Pharma, Alpa Laboratories, Kimia Biosciences, Denis Chem Lab, Syschem (India), and BDH Industries within the broader healthcare sector.

While the company is currently navigating financial challenges, including losses and revenue de-growth, its established expertise in fermentation technology and manufacturing infrastructure provide a strong foundation. The stable promoter holding and long operational history since 1994 underscore management's commitment to the business despite current headwinds.