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Shilpa Medicare Limited (IN:SHILPAMED)
:SHILPAMED
India Market
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Shilpa Medicare Limited (SHILPAMED) AI Stock Analysis

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IN:SHILPAMED

Shilpa Medicare Limited

(SHILPAMED)

Rating:57Neutral
Price Target:
₹872.00
▲(3.31% Upside)
Shilpa Medicare's overall stock score is primarily influenced by its solid financial stability and revenue growth, despite challenges in operational efficiency and liquidity. The technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation, which weighs down the overall score.

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

Shilpa Medicare Limited Business Overview & Revenue Model

Company DescriptionShilpa 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 MoneyShilpa 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
65
Positive
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
72
Positive
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
58
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue12.86B12.86B11.53B10.43B11.40B9.00B
Gross Profit7.77B8.76B7.10B6.27B7.56B6.29B
EBITDA3.11B3.11B2.46B1.13B2.27B2.73B
Net Income782.93M782.93M318.74M-325.33M606.62M1.48B
Balance Sheet
Total Assets33.11B33.11B30.93B29.04B28.75B26.32B
Cash, Cash Equivalents and Short-Term Investments585.61M585.61M302.26M221.92M338.29M1.23B
Total Debt5.88B5.88B9.37B7.98B6.83B8.46B
Total Liabilities9.47B9.47B12.93B11.30B10.64B11.65B
Stockholders Equity23.72B23.72B18.09B17.83B18.22B14.79B
Cash Flow
Free Cash Flow0.00-1.11B-492.22M-467.44M-2.27B-3.07B
Operating Cash Flow0.001.32B1.35B1.80B1.05B469.28M
Investing Cash Flow0.00-1.99B-1.67B-2.33B-2.85B-4.04B
Financing Cash Flow0.00626.54M1.39B457.98M828.58M4.36B

Shilpa Medicare Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price844.10
Price Trends
50DMA
874.17
Negative
100DMA
829.31
Positive
200DMA
788.50
Positive
Market Momentum
MACD
-10.12
Positive
RSI
45.36
Neutral
STOCH
55.44
Neutral
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 844.1 is below the 20-day moving average (MA) of 854.47, below the 50-day MA of 874.17, and above the 200-day MA of 788.50, indicating a neutral trend. The MACD of -10.12 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 55.44 is Neutral, 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
₹1.05T18.53
0.63%15.86%2.02%
72
Outperform
₹634.18B27.76
0.85%4.49%11.22%
63
Neutral
₹481.21B50.64
1.95%6.65%48.47%
62
Neutral
₹117.60B32.44
2.29%-23.93%-31.53%
57
Neutral
₹81.84B73.68
11.13%127.34%
54
Neutral
₹561.75B75.08
0.13%10.99%
51
Neutral
$7.92B-0.43-41.67%2.21%22.29%-1.85%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SHILPAMED
Shilpa Medicare Limited
844.10
35.45
4.38%
IN:ALKEM
Alkem Laboratories Ltd.
5,336.45
-906.51
-14.52%
IN:DRREDDY
Dr. Reddy's Laboratories Ltd.
1,268.55
-56.99
-4.30%
IN:GLAXO
GlaxoSmithKline Pharmaceuticals Limited
2,770.30
-11.83
-0.43%
IN:GLENMARK
Glenmark Pharmaceuticals Limited
2,053.50
353.54
20.80%
IN:SANOFI
Sanofi India Limited
5,087.95
-2,124.44
-29.46%
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 06, 2025