Shilpa Medicare Limited (SHILPAMED) AI Stock Analysis

• Market Cap: ₹85.44B
• Dividend Yield: N/A
• Average Volume (3M): 4.87K
• Price to Earnings (P/E): 108.9
• Beta (1Y): 0.79
• Revenue Growth: 11.73%
• EPS Growth: 118.53%
• Country: IN
• Employees: 1,007
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 3.70
• Shares Outstanding: 97,790,910
• 10 Day Avg. Volume: 3,740
• 30 Day Avg. Volume: 4,873
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹933.00
• Price Target Upside: 2.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹933.00 ▲(2.89% Upside)

Shilpa Medicare's overall score is driven by solid financial stability and positive technical momentum, but is hindered by high valuation and liquidity challenges. Revenue growth and strong gross margins are positives, but operational efficiency and cash flow management need improvement. The lack of dividend yield and high P/E ratio suggest overvaluation, impacting the stock's attractiveness.

Shilpa Medicare Limited Business Overview & Revenue Model

Company Description

Shilpa Medicare Limited (SHILPAMED) is a prominent pharmaceutical company based in India. The company operates in the healthcare and pharmaceutical sectors, focusing on the development, manufacture, and marketing of high-quality generic and specialty pharmaceutical products. Shilpa Medicare specializes in producing active pharmaceutical ingredients (APIs), intermediates, and formulations, catering to a diverse range of therapeutic areas, including oncology, immunology, and anti-infectives.

How the Company Makes Money

Shilpa Medicare Limited generates revenue primarily through the sale of its pharmaceutical products, which include both active pharmaceutical ingredients (APIs) and finished formulations. The company serves both domestic and international markets, leveraging its robust manufacturing capabilities and regulatory compliance to supply high-quality products worldwide. Additionally, Shilpa Medicare engages in contract manufacturing and offers contract research services, which contribute to its revenue streams. Strategic partnerships and collaborations with other pharmaceutical companies also play a significant role in expanding its market reach and boosting its earnings. The company's focus on innovation and development of niche therapeutic products further enhances its financial performance.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.86B	11.53B	10.43B	11.40B	9.00B
Gross Profit	8.76B	7.10B	6.27B	7.56B	6.29B
EBITDA	3.11B	2.46B	1.13B	2.27B	2.73B
Net Income	782.93M	318.74M	-325.33M	606.62M	1.48B
Balance Sheet
Total Assets	33.11B	30.93B	29.04B	28.75B	26.32B
Cash, Cash Equivalents and Short-Term Investments	585.61M	302.26M	221.92M	338.29M	1.23B
Total Debt	5.88B	9.37B	7.98B	6.83B	8.46B
Total Liabilities	9.47B	12.93B	11.30B	10.64B	11.65B
Stockholders Equity	23.72B	18.09B	17.83B	18.22B	14.79B
Cash Flow
Free Cash Flow	-1.11B	-492.22M	-467.44M	-2.27B	-3.07B
Operating Cash Flow	1.32B	1.35B	1.80B	1.05B	469.28M
Investing Cash Flow	-1.99B	-1.67B	-2.33B	-2.85B	-4.04B
Financing Cash Flow	626.54M	1.39B	457.98M	828.58M	4.36B

Shilpa Medicare Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 906.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 906.75 is above the 20-day moving average (MA) of 887.96, above the 50-day MA of 894.74, and above the 200-day MA of 786.13, indicating a neutral trend. The MACD of -13.60 indicates Positive momentum. The RSI at 38.78 is Neutral, neither overbought nor oversold. The STOCH value of 20.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SHILPAMED.

Shilpa Medicare Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALKEM	72 Outperform	₹615.84B	26.96		0.83%	4.49%	11.22%
DRREDDY	70 Outperform	₹1.02T	17.92		0.65%	15.76%	2.01%
GLAXO	65 Neutral	₹438.60B	46.16		2.01%	6.65%	48.47%
SANOFI	62 Neutral	₹117.33B	32.37		2.30%	-23.93%	-31.53%
GLENMARK	62 Neutral	₹580.50B	55.43		0.12%	9.39%	―
SHILPAMED	61 Neutral	₹85.44B	108.89		―	11.73%	118.53%
Sector *	57 Neutral	£5.17B	4.93	-44.55%	2.31%	28.89%	-10.08%