Shilpa Medicare Limited (SHILPAMED) AI Stock Analysis

Shilpa Medicare Limited

(NSE:SHILPAMED)

Select Model

Rating:73Outperform

Price Target:INR 1,007.00▲(8.40% Upside)

Action:reiterated

Date:09/19/26

Score led by robust financial recovery and low-leverage balance sheet plus strong technical momentum above key averages; high P/E valuation tempers the overall result.

Positive Factors

Revenue Growth and Profitability RecoveryThe FY2026 recovery combines renewed revenue growth with materially stronger profitability, indicating improved operating performance rather than growth alone. If these margins remain durable, the company can generate more earnings from expanding sales and support continued investment in complex pharmaceutical products and capabilities.

Negative Factors

Persistent Negative Free Cash FlowPersistent negative free cash flow means reported earnings have not consistently translated into surplus cash after investment needs. This weakens cash-generation quality, can increase reliance on external funding, and may constrain the company’s ability to pursue growth while maintaining financial flexibility.

Shilpa Medicare Limited (SHILPAMED) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 188.15B
Dividend Yield: 0.12%
Average Volume (3M): 122.11K
Price to Earnings (P/E): 62.9
Beta (1Y): 0.63
Revenue Growth: 27.91%
EPS Growth: 167.68%
Country: India
Employees: 1,132
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Shilpa Medicare Limited Business Overview & Revenue Model

Company Description

Shilpa Medicare Limited, including its various subsidiaries, manufactures and distributes a range of active pharmaceutical ingredients (APIs), intermediate compounds, and finished drug formulations. Operating across India, the United States, Europe,...

How the Company Makes Money

Shilpa Medicare primarily makes money through (1) sales of pharmaceutical APIs and intermediates to other drug manufacturers, where revenue is earned per unit/contracted supply based on volumes and pricing for specific molecules; (2) sales of finishe...

Shilpa Medicare Limited Financial Statement Overview

Summary

Strong balance sheet with low 0.25 debt-to-equity and equity at 25.91B; revenue grew 14.71% to 15.39B with net income recovery to 2.43B, though negative free cash flow of -0.75B adds risk.

Income Statement

75Positive

Balance Sheet

85Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	16.82B	15.39B	12.86B	11.53B	10.43B	11.40B
Gross Profit	9.36B	6.24B	8.76B	7.10B	1.34B	7.56B
EBITDA	4.77B	4.35B	3.11B	2.46B	1.13B	2.23B
Net Income	2.97B	2.43B	782.93M	318.74M	-325.33M	606.62M
Balance Sheet
Total Assets	0	37.06B	33.11B	30.93B	29.04B	28.75B
Cash, Cash Equivalents and Short-Term Investments	451.80M	451.80M	585.61M	302.26M	221.92M	338.29M
Total Debt	0	6.60B	5.88B	9.37B	7.98B	6.83B
Total Liabilities	-25.91B	11.14B	9.47B	12.93B	11.30B	10.64B
Stockholders Equity	25.91B	25.91B	23.72B	18.09B	17.83B	18.22B
Cash Flow
Free Cash Flow	384.68M	-754.00M	-1.11B	-492.22M	-467.44M	-2.27B
Operating Cash Flow	2.01B	2.95B	1.32B	1.35B	1.80B	1.05B
Investing Cash Flow	-1.71B	-3.27B	-1.99B	-1.67B	-2.33B	-2.85B
Financing Cash Flow	-302.20M	612.20M	626.54M	467.75M	457.98M	828.58M

Shilpa Medicare Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price929.00

Price Trends

50DMA950.79Positive

100DMA792.29Positive

200DMA583.05Positive

Market Momentum

MACD-13.64Positive

RSI52.24Neutral

STOCH80.31Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHILPAMED, the sentiment is Positive. The current price of 929.00 is below the 20-day moving average (MA) of 958.35, below the 50-day MA of 950.79, and above the 200-day MA of 583.05, indicating a neutral trend. The MACD of -13.64 indicates Positive momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 80.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SHILPAMED.

Shilpa Medicare Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SHILPAMED against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CAPLIPOINT	85Outperform	INR 176.72B	26.57	―	0.34%	15.01%	17.73%
IN:STAR	74Outperform	INR 98.55B	15.97	―	0.47%	11.28%	55.18%
IN:AKUMS	73Outperform	INR 115.20B	38.41	―	0.41%	9.18%	-14.57%
IN:SHILPAMED	73Outperform	INR 186.71B	62.87	―	0.12%	27.91%	167.68%
IN:APLLTD	70Outperform	INR 156.82B	22.62	―	1.50%	14.12%	14.98%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:JUBLPHARMA	45Neutral	INR 147.29B	41.54	―	0.54%	16.27%	-23.50%

* General Sector Average

Performance Comparison

IN:SHILPAMED and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SHILPAMED	Shilpa Medicare Limited	954.65	596.67	166.68%
IN:AKUMS	Akums Drugs and Pharmaceuticals Limited	731.90	263.22	56.16%
IN:APLLTD	Alembic Pharmaceuticals Limited	797.80	-148.22	-15.67%
IN:CAPLIPOINT	Caplin Point Laboratories Limited	2324.85	332.58	16.69%
IN:JUBLPHARMA	Jubilant Pharmova Limited	924.70	-250.47	-21.31%
IN:STAR	Strides Pharma Science Ltd	1069.15	111.23	11.61%

Shilpa Medicare Limited Corporate Events

Shilpa Medicare’s Jadcherla Unit Wins European GMP Nod

Oct 10, 2026

Shilpa Medicare Limited operates in the pharmaceutical industry, focusing on the manufacturing, testing and distribution of sterile injections and non-sterile tablet and capsule finished dosage forms. From its Unit 4 facility in Jadcherla, Telangana,...

Shilpa Medicare’s 39th AGM Confirms Clean Audit and Reviews Outlook

Sep 11, 2026

Shilpa Medicare Limited convened its 39th Annual General Meeting on September 11, 2026, via video conferencing and other audio-visual means from its registered office, adhering to guidelines issued by the Ministry of Corporate Affairs and SEBI. The m...

Shilpa Medicare Names Dr. Uday Harle CEO of Biologics Subsidiary

Aug 3, 2026

Shilpa Medicare Limited has appointed Dr. Uday N. Harle as Chief Executive Officer of its wholly owned subsidiary, Shilpa Biologicals Private Limited, effective August 3, 2026. The move signals a strengthening of leadership at the company’s bio...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 19, 2026

Shilpa Medicare Limited AI Stock Analysis