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*Stock Name: Bajaj Healthcare Ltd.*

*Industry: Pharmaceuticals*

*Market Capitalization: Approximately ₹1,206 crore*

*Revenue (TTM): ₹475.93 crore*

*Core Operations and Revenue Breakdown*

Bajaj Healthcare specializes in the manufacturing of Active Pharmaceutical Ingredients (APIs), intermediates, and finished formulations.

The company operates in several therapeutic areas, including:

*APIs*: Contributing significantly to both domestic and export markets.
Formulations: Focused on various healthcare segments.

*Opium Processing*: This segment has shown exceptional growth, increasing by over 582% year-on-year, becoming a key growth driver.

*Sector Size*

The Indian pharmaceutical sector is valued at over $50 billion and is projected to grow at a CAGR of around 10%, driven by increasing healthcare demands and exports.

*Company Results and Past Comparison*

For *Q2 FY2025* Bajaj Healthcare reported:

*Revenue from Operations:*

₹133.09 Crores, up 31.5% YoY from ₹101.21 Crores.

EBITDA: ₹24.52 Crores, up 29.4% YoY.

EBITDA Margin: 18.4%.

Net Profit After Tax (PAT): ₹9.46 Crores compared to a loss of ₹3.46 Crores in Q2 FY2024.

Management highlighted that the impressive results were driven by robust performance across all segments, particularly in the API and formulation sectors which grew by 19% and 28%, respectively.

*Management Commentary*

Anil Jain, Managing Director, expressed satisfaction with the company's turnaround in performance:

"Our revenue from operations surged by approximately 32% year-on-year led by robust performance across all segments coupled with expansion in our margins resulting in a significant increase in our bottom line."

He emphasized the importance of the opium processing business as a meaningful growth driver and mentioned ongoing efforts to sell assets from discontinued operations to further strengthen financial health.

The management is optimistic about maintaining profitability and sustaining growth momentum through strategic expansions and partnerships.

*Order Book Status*

The company is actively expanding its capacity to meet increasing government requirements for its opium processing business and other APIs.

Recent developments include a new supply agreement with a European partner for an API, which underscores the company's commitment to quality and operational excellence.

*Fundraising Activities*

The company approved the issuance of equity shares worth approximately ₹137 crores through a preferential allotment of shares priced at ₹338 each.
Additionally, it plans to issue convertible equity warrants that could raise around ₹70 crores.
This fundraising is aimed at strengthening its financial position and supporting expansion plans within the pharmaceutical sector.

Capital Expenditure Plans
The company is expected to invest in upgrading manufacturing facilities and expanding production capabilities to cater to rising demand for its products.

Specific amounts for capital expenditures have not been disclosed but are anticipated as part of the overall growth strategy.

*Growth Comparison with Sector*

Bajaj Healthcare's recent revenue growth (31.5% YoY) outpaces the sector average, reflecting successful strategies in capturing market share despite previous challenges.

*Summary of Pros and Cons*

*Pros*:

Strong recovery in revenue growth (31.5% YoY) indicating improved operational performance.

A robust order book that positions the company well for future growth.

Recent fundraising through equity shares and warrants suggests proactive financial management.

*Cons*:

Negative profitability metrics (negative ROE) raise concerns about long-term sustainability.

The stock has experienced volatility, with fluctuating performance over recent quarters

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