Recommendation from Healthcare Sector

This column gives you scrip chosen by the research team during the fortnight that is fundamentally strong and expected to give good capital appreciation over a time period of 1 year. [EasyDNNnews:PaidContentStart]

Bliss GVS Pharma Ltd: NICHE GLOBAL LEADER WITH REGULATED MARKET UPSIDE

HERE IS WHY
✓ Leadership in Specialised Dosage Forms
✓ Strong Export Franchise with Margin Stability
✓ Entry into Regulated Markets Driving Re-Rating

The global pharmaceutical formulations market continues to expand, supported by rising healthcare access, increasing chronic disease prevalence, and growing demand for affordable generics across emerging and regulated markets. India remains a key supplier to the world, accounting for nearly 20 per cent of global generic exports. Within this broader industry, niche formulation players with specialised manufacturing capabilities enjoy stronger entry barriers and margin stability. Considering these factors, we recommend Bliss GVS Pharma Ltd as our Choice Scrip for this issue.

Bliss GVS Pharma (Bliss) is a globally recognised pharmaceutical formulations company specialising in suppositories and pessaries dosage forms. The company operates in over 60 countries and derives more than 90 per cent of its revenue from international markets. It manufactures and markets over 150 branded formulations across therapeutic categories such as anti-malarial, anti-fungal, anti-bacterial, anti-inflammatory, contraceptive, and anti-diabetic segments. Bliss is also India’s first EU-GMP certified suppository manufacturer, reinforcing its technical expertise in complex dosage forms. Geographically, around 93.4 per cent of revenue in FY25 came from Rest of the World markets, while India contributed 6.6 per cent. Africa remains a key market, where the company has built strong distribution relationships over decades, particularly in anti-malarial therapies.

In Q3FY26, the company reported revenue of ₹218 crore, compared to ₹210 crore in Q3FY25, reflecting modest growth on a year-on-year basis. Operating profit improved to ₹35 crore from ₹30 crore in the corresponding quarter last year, with operating margins expanding to 16 per cent from 14 per cent. Net profit stood at ₹25 crore, largely flat compared to ₹26 crore in Q3FY25, primarily due to higher Tax incidence. The improvement in operating performance despite moderate revenue growth indicates better cost control and improved operating leverage. Over the past three years, the company has delivered profit growth of nearly 44 per cent, with EPS growth of over 43 per cent. Bliss maintains a strong balance sheet with a debt-to-equity ratio of just 0.05 times.

A key growth trigger for the company is its expansion into regulated markets, including the United States. Regulatory approvals in developed markets enhance revenue quality and offer higher margin opportunities. Even gradual scaling in these geographies can materially improve blended margins and earnings visibility over the medium term. The company’s portfolio diversification into dermatology and women’s healthcare segments provides incremental growth avenues beyond its traditional anti-malarial base.

On the valuation front, the stock is currently trading at a P/E of 20.5x, compared with the industry average of 27.7x. Its EV/EBITDA multiple of 9.85x remains reasonable for a niche exportfocused pharma player with improving earnings trajectory. The PEG ratio of 0.47 suggests that growth is not fully priced in. Over the past year, the stock has delivered a return of nearly 78 per cent, reflecting improving investor confidence. However, it still trades about 12 per cent below its 52-week high, offering room for further upside as regulated market revenues scale up. Bliss combines niche manufacturing expertise, strong export presence, improving profitability, and conservative financial management. With regulated market expansion acting as a structural growth trigger and valuations remaining reasonable relative to industry benchmarks, considering its niche leadership, strengthening earnings profile, and expansion into higher value markets, we recommend a BUY.

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