Incorporated in 1993, Bajaj Healthcare Ltd manufactures a wide range of Active Pharmaceutical Ingredients (APIs) and Formulations. The company operates as a specialized pharmaceutical manufacturer focused on the development, supply, and manufacturing of Amino Acids, Nutritional Supplements, and Active Pharma Ingredients for Pharmaceutical, Nutraceuticals, and Food industries. It manufactures active pharmaceutical ingredients and formulations in the form of tablets, capsules, powder, etc., for approximately 550+ clients, exporting bulk drugs to over 62 countries in Europe, USA, Africa, Australia, and other regions.
The company has established itself as a significant player in the pharmaceutical industry with a robust manufacturing infrastructure. It possesses five API manufacturing plants located in Tarapur, Maharashtra, and Vadodara in Gujarat, one manufacturing plant for finished formulations in Vadodara, Gujarat, and one manufacturing plant for intermediates in Tarapur, Maharashtra.
As of 23rd May 2025, the market capitalization of Bajaj Healthcare Ltd (BAJAJHCARE) stands at ₹1,829.14 Crore. The stock has shown strong performance, with the Bajaj Healthcare Ltd share price moving up by 87.82% on BSE over the last 12 months. The 52-week high for the stock is ₹745, and the 52-week low is ₹263.30.
The company's valuation metrics reflect its current market position. The P/E (price-to-earnings) ratio of Bajaj Healthcare Ltd (BAJAJHCARE) is -21.83, and the P/B (price-to-book) ratio is 6.57. The current dividend yield of Bajaj Healthcare Ltd (BAJAJHCARE) is 0.15%.
The company demonstrated strong financial performance in Q2 FY25:
- Revenue from Operations: ₹1,330.9 million, a 31.5% increase YoY compared to ₹1,012.1 million in Q2 FY24.
- EBITDA: ₹245.2 million, a 29.4% increase YoY compared to ₹189.5 million in Q2 FY24.
- EBITDA Margin: 18.4% for Q2 FY25.
- PAT (Profit After Tax): ₹94.6 million, a significant turnaround from -₹34.6 million in Q2 FY24.
- PAT Margin: 7.1% for Q2 FY25.
Management highlighted that the revenue from operations surged by approximately 32% YoY, led by robust performance across all segments. This, coupled with an expansion in margins, resulted in a 90% year-on-year increase in the bottom line from continuing operations.
In Q2 FY25, revenue from opium processing skyrocketed by 582.9% YoY to ₹13.66 crore. API (domestic) revenue jumped 21.8% YoY, and formulations revenue increased by 27.7% YoY. API (exports) also showed healthy growth of 12.3% YoY, reaching ₹29.20 crore. This demonstrates the company's diversified revenue streams and strong growth across different product segments.
- Q2 FY25 Revenue: ₹1,330.9 million (+31.5% YoY)
- Q2 FY25 EBITDA: ₹245.2 million (+29.4% YoY)
- Q2 FY25 PAT: ₹94.6 million (vs. -₹34.6 million in Q2 FY24)
- Market Capitalization: ₹1,829.14 Crore (as of 23rd May 2025)
- P/E Ratio: -21.83
- P/B Ratio: 6.57
- Dividend Yield: 0.15%
- Promoter Holding: 59.19% (as of Mar 2025)
- Debt to Equity: 14%
Bajaj Healthcare manufactures both Active Pharmaceutical Ingredients (APIs) and branded and generic formulations. The company's therapeutic API portfolio includes anticonvulsants, vitamins, bactericidal, bronchodilators, and other categories. In the Finished Dosage Form (FDF) segment, it offers anti-Platelets, anti-arrhythmia, anti-hypertensive, and several other products.
The company's robust manufacturing infrastructure includes five API plants, one finished formulations plant, and one intermediate plant across Maharashtra and Gujarat. Bajaj Healthcare exports bulk drugs to over 62 countries, including Europe, USA, Africa, and Australia, showcasing its strong global presence.
The company has made significant progress in debt reduction, repaying borrowings to the tune of ₹150.0 crore, which has further strengthened its financial position. The company maintains a reasonable debt-to-equity ratio of 14%, signaling a healthy balance sheet.
India Ratings has indicated that a significant increase in the scale of operations and profitability, alongside an improvement in the gross working capital cycle, resulting in the net leverage reducing below 2.0x on a sustained basis, could lead to a positive rating action. This suggests potential for credit rating upgrades based on continued operational improvements and prudent financial management.
While the company has delivered a relatively poor sales growth of 5.76% over the past five years, recent quarters have shown strong improvement and a significant turnaround. Bajaj Healthcare Ltd belongs to the Health Care sector and Pharmaceuticals sub-sector and is actively traded on both NSE and BSE.
The company's recent operational turnaround, debt reduction efforts, and strong quarterly performance position it well for future growth in the pharmaceutical sector. Investors should monitor the company's ability to sustain these improvements over the long term to capitalize on its potential in the API and pharmaceutical formulations market.
