Shilpa Medicare Limited (SHILPAMED) AI Stock Analysis

• Market Cap: ₹63.49B
• Dividend Yield: 0.16%
• Average Volume (3M): 38.83K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.97
• Revenue Growth: 10.46%
• EPS Growth: 111.15%
• Country: IN
• Employees: 1,007
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.28
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 16.9
• Revenue Forecast (FY): ₹14.68B

• Rating: 54 Neutral
• Price Target: ₹331.00 ▲(3.47% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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.

Positive Factors

Oncology & complex therapies focus

A strategic focus on oncology and other complex/specialty therapies creates durable competitive advantages: higher technical barriers, specialized regulatory pathways, and stickier customer relationships. This positioning supports premium pricing, long-term contracts and sustainable revenue streams.

Healthy revenue growth and margins

Consistent top-line expansion alongside very strong gross margins indicates core product economics are solid and scalable. Even with moderate net margins, sustained revenue growth and high gross margins underpin durable profitability potential as the company scales and leverages fixed-cost absorption.

Improved leverage and strong equity base

Markedly lower leverage and a high equity ratio provide long-term financial stability and flexibility. Reduced debt burden lowers interest risk and supports capital allocation for R&D or capacity expansion without jeopardizing solvency, improving resilience across business cycles.

Negative Factors

Declining operational efficiency

A large fall in EBIT margin signals rising operating costs or lower operating leverage that can erode sustainable profitability. Unless cost structure or pricing is addressed, margin deterioration can persist and limit the company's ability to invest sustainably in R&D, capacity, or commercialization.

Negative free cash flow conversion

Negative free cash flow despite stable operating cash flow points to heavy capital spending and weak profit-to-cash conversion. This strains liquidity and constrains reinvestment or deleveraging options, making growth and compliance investments dependent on external funding or slower organic cash build.

Low returns on equity

Despite balance-sheet strength, low ROE indicates limited returns relative to capital employed. Modest net margins and headroom in operational performance mean capital may not generate robust shareholder returns, potentially limiting long-term value creation absent efficiency or product-mix improvements.

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 makes money primarily by developing, manufacturing, and supplying pharmaceutical products and services across a few core revenue streams: (1) Sale of APIs: The company manufactures and sells APIs, particularly for oncology and other complex therapeutic areas, supplying them to other pharmaceutical companies and/or to its own formulations business. Revenue is generated from contracted supply (volume-based sales) where pricing depends on API complexity, regulatory grade, and customer contracts. (2) Sale of finished dosage formulations: The company develops and manufactures finished pharmaceutical products (tablets, capsules, injectables, etc.) and earns revenue by selling these formulations either under its own/affiliate brands in certain markets and/or by supplying to partners/distributors. In regulated markets, formulations revenue is often tied to successful regulatory approvals and product launches, after which sales accrue through ongoing commercial supply. (3) Contract development and manufacturing (CDMO/CRAMS): The company provides development and manufacturing services to other pharma/biotech companies for APIs and/or formulations. This generates service/contract revenue through development fees, tech-transfer/scale-up work, and commercial manufacturing fees once a product is launched. (4) R&D-driven/technology-led income (where applicable): For complex products, the company may earn income linked to out-licensing, dossier/technology transfers, or milestone/fee-based arrangements connected to product development and commercialization; if such arrangements exist for specific products/partners, earnings would be driven by upfront payments, milestones, and/or supply revenues tied to commercialization. Key factors influencing earnings include the mix of complex oncology products (which can command higher margins), success in obtaining regulatory approvals for exports to regulated markets, long-term supply agreements with pharma partners, capacity utilization at manufacturing sites, and the ability to scale complex manufacturing (including sterile/oncology and advanced modalities) reliably and compliantly.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.42B	12.86B	11.53B	10.43B	11.40B	9.00B
Gross Profit	9.61B	8.76B	7.10B	1.34B	7.56B	6.29B
EBITDA	3.48B	3.11B	2.46B	1.13B	2.23B	2.73B
Net Income	1.37B	782.93M	318.74M	-325.33M	606.62M	1.48B
Balance Sheet
Total Assets	34.95B	33.11B	30.93B	29.04B	28.75B	26.32B
Cash, Cash Equivalents and Short-Term Investments	535.50M	585.61M	302.26M	221.92M	338.29M	1.23B
Total Debt	5.93B	5.88B	9.37B	7.98B	6.83B	8.46B
Total Liabilities	10.57B	9.47B	12.93B	11.30B	10.64B	11.65B
Stockholders Equity	24.37B	23.72B	18.09B	17.83B	18.22B	14.79B
Cash Flow
Free Cash Flow	384.68M	-1.11B	-492.22M	-467.44M	-2.27B	-3.07B
Operating Cash Flow	2.01B	1.32B	1.35B	1.80B	1.05B	469.28M
Investing Cash Flow	-1.71B	-1.99B	-1.67B	-2.33B	-2.85B	-4.04B
Financing Cash Flow	-302.20M	626.54M	467.75M	457.98M	828.58M	4.36B

Shilpa Medicare Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 319.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 319.9 is below the 20-day moving average (MA) of 327.55, above the 50-day MA of 312.09, and below the 200-day MA of 378.12, indicating a neutral trend. The MACD of 1.69 indicates Positive momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 15.89 is Positive, 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
ALKEM	72 Outperform	₹639.51B	25.97	―	0.80%	9.32%	11.25%
SANOFI	71 Outperform	₹79.74B	38.14	―	4.73%	-19.94%	-22.49%
DRREDDY	70 Outperform	₹1.08T	21.88	―	0.63%	14.10%	9.72%
GLAXO	63 Neutral	₹412.52B	35.44	―	2.16%	4.17%	41.51%
SHILPAMED	54 Neutral	₹63.49B	35.22	―	0.16%	10.46%	111.15%
GLENMARK	53 Neutral	₹617.02B	35.61	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Shilpa Medicare Limited Corporate Events

Shilpa Medicare Wins NCLT Approval to Merge Wholly Owned Subsidiary

Shilpa Medicare Limited has received approval from the National Company Law Tribunal’s Bengaluru Bench for the amalgamation of its wholly owned subsidiary, Shilpa Therapeutics Private Limited, with the parent company. The tribunal sanctioned the scheme of amalgamation under the Companies Act, 2013, through an order dated 27 February 2026, which has been made available on the NCLT website.

The merger will become effective once certified copies of the NCLT order are obtained and filed with the Registrar of Companies, along with fulfilment of other conditions specified in the scheme. The consolidation is expected to simplify the corporate structure by integrating the subsidiary into Shilpa Medicare, which may enhance operational efficiency and provide greater transparency for shareholders and regulators.

Shilpa Medicare Files First Transdermal Patch ANDA in US for Rotigotine

Shilpa Medicare has filed an Abbreviated New Drug Application with the U.S. Food and Drug Administration for Rotigotine transdermal patches in multiple strengths, its first-ever transdermal patch submission to the US market and a generic version of Neupro indicated for Parkinson’s disease and Restless Legs Syndrome in a US market estimated at about $112 million. The filing, originating from the company’s USFDA- and Europe-approved Unit VI facility near Bengaluru that manufactures specialized dosage forms including transdermal patches and oral mouth-dissolving films, marks a strategic milestone that deepens Shilpa’s presence in complex generics and advanced drug delivery systems, potentially strengthening its competitive positioning in the US pharmaceutical market and expanding treatment options for neurological patients.

Shilpa Medicare Releases Q3 FY26 Investor Presentation

Shilpa Medicare Limited has released its investor presentation for the quarter and nine months ended 31 December 2025, detailing a company overview, business highlights, financial performance and other corporate updates. The disclosure, made under regulatory requirements and available on the company’s website, is intended to inform shareholders and market participants about the firm’s recent operational and financial trajectory, reinforcing transparency and supporting investor assessment of its performance and positioning in the healthcare sector.

Shilpa Medicare Sells Non-Material Canadian Subsidiary Koanna Healthcare

Shilpa Medicare Limited has exited its investment in Koanna Healthcare Canada Inc., after the Canadian unit allotted 284,210,20 equity shares to individual buyer Steve N. Slilaty for a total consideration of CAD 2,000 under a share sale-purchase agreement dated 14 January 2026. As a result, Koanna Healthcare Canada Inc. has ceased to be a wholly owned subsidiary, though it was not classified as a material subsidiary and contributed only a negligible share to Shilpa Medicare’s income and net worth, meaning the transaction is not expected to have any impact on the company’s current financials or trigger related-party transaction concerns.

Shilpa Medicare Faces Court Injunction on Ruxolitinib Product, Says No Financial Impact

Shilpa Medicare Limited has disclosed that the Delhi High Court has issued an ex-parte ad-interim injunction restraining the company, its material subsidiary Shilpa Pharma Lifesciences and wholly owned subsidiary FTF Pharma from manufacturing, stockpiling, importing, exporting or supplying pharmaceutical products containing the compound Ruxolitinib and/or its salts in any form that may infringe a specified Indian patent. A court-appointed Local Commissioner inspected the company’s premises and collected records, with Shilpa Medicare stating it fully cooperated and that the Ruxolitinib-related product was used solely for research purposes, resulting in no financial impact or disruption to its ongoing business operations. The company has acknowledged the order, is complying with its directions and is evaluating legal options, including filing responses or appeals, as it manages the potential intellectual property dispute while maintaining normal operations.