Shilpa Medicare Limited (SHILPAMED) AI Stock Analysis

• Market Cap: ₹69.67B
• Dividend Yield: 0.14%
• Average Volume (3M): 38.83K
• Price to Earnings (P/E): 62.7
• Beta (1Y): 0.80
• Revenue Growth: 11.13%
• EPS Growth: 127.34%
• Country: IN
• Employees: 1,007
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.40
• Shares Outstanding: 195,581,820
• 10 Day Avg. Volume: 85,780
• 30 Day Avg. Volume: 38,829
• PEG Ratio: 0.69
• Price to Book (P/B): 2.70
• Price to Sales (P/S): 4.98
• P/FCF Ratio: -57.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ₹376.00 ▲(4.17% Upside)

The overall stock score of 54 reflects a combination of solid financial performance with strong revenue growth and gross margins, but challenges in operational efficiency and liquidity. The technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation. The lack of earnings call and corporate events data limits further insights.

Shilpa Medicare Limited Business Overview & Revenue Model

Company Description

Shilpa Medicare Limited, together with its subsidiaries, engages in the manufacturing and selling active pharmaceutical ingredients (API's), intermediates, and formulations in India, the United States, Europe, and internationally. It offers oncology and non-oncology API's.; and new drug delivery systems, peptides/biotech products, specialty chemicals, etc. The company also provides contract manufacturing of various dosage forms, such as tablets, capsules, liquid injections, lyophilized injectables, and sterile dry powder injectables. It is also involved in the wind power generation activities. Shilpa Medicare Limited was incorporated in 1987 and is headquartered in Raichur, India.

How the Company Makes Money

Shilpa Medicare generates revenue through multiple streams, primarily from the sale of generic pharmaceuticals, which include a wide range of oncology products. The company derives significant income from exports, as it has established a presence in various international markets, including the United States and Europe. Key revenue streams include direct sales to healthcare providers and pharmaceutical distributors, along with licensing agreements for its proprietary formulations. Additionally, the company benefits from partnerships with other pharmaceutical firms for the co-development of products and access to new markets. Shilpa Medicare's financial performance is also influenced by its ability to secure regulatory approvals for its products, which opens up new revenue opportunities.

Shilpa Medicare Limited Financial Statement Overview

Summary

Shilpa Medicare demonstrates healthy revenue growth and strong gross margins, but faces challenges in operational efficiency and liquidity. The balance sheet is robust with low leverage and high equity ratios, providing financial stability. However, the company's ability to convert earnings to cash is a concern, impacting its overall financial flexibility.

Income Statement

Shilpa Medicare showed a decent revenue growth rate of 11.56% from 2024 to 2025, indicating positive momentum in sales. The gross profit margin for 2025 is strong at 68.12%, but the net profit margin is moderate at 6.09%, which is an improvement from 2.76% in 2024. However, the EBIT margin decreased from 32.62% in 2024 to 15.87% in 2025, reflecting higher operational costs affecting profitability. Overall, the company exhibits solid revenue growth and gross margins, but operational efficiency remains a challenge.

Balance Sheet

The debt-to-equity ratio decreased to 0.25 in 2025 from 0.52 in 2024, indicating improved leverage and reduced financial risk. The return on equity (ROE) increased to 3.30% in 2025 from 1.76% in 2024, reflecting better utilization of equity. The equity ratio is robust at 71.65%, suggesting strong financial stability. Shilpa Medicare's balance sheet shows a healthy equity position and reduced debt, highlighting financial stability but moderate returns on equity.

Cash Flow

Operating cash flow remained stable in 2025 compared to 2024, but free cash flow declined significantly due to higher capital expenditures. The free cash flow to net income ratio is negative, indicating challenges in converting profits to cash. The operating cash flow to net income ratio is 1.69 in 2025, which shows efficient cash generation relative to profits. While operating cash flows are consistent, negative free cash flows highlight liquidity concerns due to substantial capital spending.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.15B	12.86B	11.53B	10.43B	11.40B	9.00B
Gross Profit	9.18B	8.76B	7.10B	1.34B	7.56B	6.29B
EBITDA	3.28B	3.11B	2.46B	1.13B	2.27B	2.73B
Net Income	1.11B	782.93M	318.74M	-325.33M	606.62M	1.48B
Balance Sheet
Total Assets	0.00	33.11B	30.93B	29.04B	28.75B	26.32B
Cash, Cash Equivalents and Short-Term Investments	285.24M	585.61M	302.26M	221.92M	338.29M	1.23B
Total Debt	0.00	5.88B	9.37B	7.98B	6.83B	8.46B
Total Liabilities	-23.64B	9.47B	12.93B	11.30B	10.64B	11.65B
Stockholders Equity	23.64B	23.72B	18.09B	17.83B	18.22B	14.79B
Cash Flow
Free Cash Flow	0.00	-1.11B	-492.22M	-467.44M	-2.27B	-3.07B
Operating Cash Flow	0.00	1.32B	1.35B	1.80B	1.05B	469.28M
Investing Cash Flow	0.00	-1.99B	-1.67B	-2.33B	-2.85B	-4.04B
Financing Cash Flow	0.00	626.54M	467.75M	457.98M	828.58M	4.36B

Shilpa Medicare Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 360.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHILPAMED, the sentiment is Negative. The current price of 360.95 is below the 20-day moving average (MA) of 365.67, below the 50-day MA of 394.35, and below the 200-day MA of 386.84, indicating a bearish trend. The MACD of -9.62 indicates Negative momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 44.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHILPAMED.

Shilpa Medicare Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	―	₹1.05T	18.44	―	0.66%	14.10%	9.72%
ALKEM	―	₹663.10B	29.02	―	0.81%	4.49%	11.22%
SANOFI	―	₹110.75B	30.57	―	2.48%	-19.94%	-22.49%
GLAXO	―	₹465.11B	48.87	―	2.06%	6.65%	48.47%
SHILPAMED	―	₹69.67B	62.72	―	0.14%	11.13%	127.34%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLENMARK	―	₹522.88B	69.69	―	0.13%	10.99%	―

Shilpa Medicare Limited Corporate Events

Shilpa Medicare Announces 1:1 Bonus Equity Share Allotment

Shilpa Medicare Limited has announced the approval of a bonus equity share allotment, issuing 9,77,90,908 fully paid-up shares in a 1:1 ratio to shareholders as of October 03, 2025. This move effectively doubles the company’s paid-up share capital, enhancing shareholder value and potentially strengthening its market position.

Shilpa Medicare Announces Promoter Reclassification

Shilpa Medicare Limited announced the reclassification of two shareholders, Mr. Suraj Kumar Inani and Ms. Priya Inani, from the ‘Promoter Group’ category to the ‘Public’ category, following approval from the BSE. This reclassification, which involves a total of 4.09% of the company’s shares, reflects a strategic move in compliance with SEBI regulations, potentially impacting the company’s shareholder structure and market perception.

Shilpa Medicare Secures EMA Approval for Rivaroxaban Orodispersible Films

Shilpa Medicare Limited has received initial authorization from the European Medicine Agency for its Rivaroxaban Orodispersible Films, a generic version of Bayer AG’s Xarelto®. This product, designed for patient comfort, especially in geriatric patients, is bioequivalent to the reference product and is used to treat and prevent various thrombotic conditions. The approval strengthens Shilpa’s position in the European market, where the oral Rivaroxaban formulations market is valued at approximately USD 2.5 billion, and marks the third approval for a prescription oral mouth dissolving film product from their Bengaluru facility.

Shilpa Medicare Announces 38th AGM Notice Dispatch

Shilpa Medicare Limited has announced the dispatch of the notice for its 38th Annual General Meeting, as published in Business Line and Suddimoola newspapers. This announcement is part of the company’s compliance with regulatory requirements, reflecting its commitment to transparency and stakeholder engagement.

Shilpa Medicare Expands into Saudi Arabia with New Joint Venture

Shilpa Medicare Limited, through its wholly owned subsidiary Koanna International FZ LLC, has entered into a joint venture with Pharma Pharmaceutical Industries & Biological Products (PPI) to establish a new pharmaceutical manufacturing facility in Saudi Arabia. This strategic move is expected to enhance Shilpa’s global footprint and strengthen its presence in the MENA region, allowing the company to supply and locally manufacture pharmaceutical formulations, thereby consolidating its market position.

Shilpa Medicare Releases Q1 FY26 Earnings Call Transcript

Shilpa Medicare Limited has released the transcript of its Q1 FY26 earnings conference call, which took place on August 13, 2025. This release provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Shilpa Medicare Gains Approval for Pioneering NAFLD Treatment in India

Shilpa Medicare Limited has announced the approval of its Nor Ursodeoxycholic Acid (NorUDCA) Tablets 500 mg by the Central Drugs Standard Control Organization (CDSCO) for the treatment of Non-Alcoholic Fatty Liver Disease (NAFLD) in India. This approval marks a significant milestone as it positions Shilpa Medicare as the first company globally to launch this novel product for NAFLD, addressing a major unmet medical need. The introduction of NorUDCA, which has demonstrated superior efficacy over placebo, underscores Shilpa’s commitment to innovation and accessible healthcare, potentially impacting millions affected by liver disease in India and beyond.