Gufic Bio Zooms To New Peak

Biotechnology company Gufic Biosciences is riding on the Bombay Stock Exchange (BSE) following its plan to begin research and development (R&D) activities.

The Gufic Biosciences scrip touched an all-time high of Rs 239 on the BSE today, with a little over 11,000 shares changing hands. The share closed at Rs 237.80 -- up 1.84 per cent over its previous close of Rs 233.50.

The stock, which was ruling around Rs 71.70 on January 1, has witnessed a Rs 167 increase or a 233.33 per cent rise so far.

The company has achieved this feat on the back of thin volumes, with average volumes in the last one month ranging between 4,500 and 9,600 shares.

 

At present, the company has strong presence in the over-the-counter (OTC) segment with well-known brands such as Roll-On, Shapers and StretchNil under its fold.

Gufic Biosciences, which was set up in 2000, has reported a net profit of Rs 51.82 lakh for the nine months ended March 2001. For the first quarter ended June 30, 2001, its net profit jumped by 233 per cent to Rs 53.66 lakh against Rs 16.12 lakh in the corresponding period last year.

The company intends to focus on the OTC segment in the short-to- medium- term, which in turn would help to finance its R&D activities.

With the introduction of new products and strengthening of its distribution and marketing activities, the company is projecting sales of Rs 44 crore for the year ended March 2002, which translates into a profit after tax of Rs 5.25 crore.

Promoters hold a 81 per cent stake in the company. With low floating stock, low demand is also pushing the stock higher.

According to the promoters, they have no immediate intention to offload stake in the company. However, an offer could be considered depending on its merits, they added.