Shilpa Medicare Limited (SHILPAMED) AI Stock Analysis

• Market Cap: ₹61.08B
• Dividend Yield: 0.16%
• Average Volume (3M): 38.83K
• Price to Earnings (P/E): 44.5
• Beta (1Y): 0.98
• 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): N/A
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹319.00 ▼(-0.28% Downside)

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

High gross margins

A 68% gross margin reflects the company’s focus on complex oncology APIs and specialty formulations that command premium pricing. High gross margins provide a durable profitability buffer against input cost swings and support sustained reinvestment into R&D and capacity for regulated markets.

Low leverage and strong equity base

Significantly reduced leverage and a 71.7% equity ratio give long-term financial stability in a capital‑intensive industry. This strengthens the company’s ability to fund capex, regulatory filings, and scale sterile/oncology capacity without immediate reliance on dilutive or expensive external financing.

Consistent revenue growth

Sustained ~11.6% revenue growth indicates growing commercial traction, likely driven by oncology/specialty product sales and CDMO relationships. For a complex pharma player, steady top-line growth supports scale economics and longer-term contract renewals in regulated and semi-regulated markets.

Negative Factors

Negative free cash flow conversion

Declining free cash flow driven by higher capex weakens the company’s ability to self-finance expansion and R&D. Negative FCF increases reliance on external funding or equity, constraining strategic flexibility and raising execution risk as the business scales complex manufacturing capabilities.

Falling operating profitability

A sharp drop in EBIT margin despite strong gross margins signals rising operating costs, lower utilisation, or elevated SG&A. If persistent, this undermines operating leverage from higher sales and reduces the company’s ability to convert revenue growth into sustainable operating profits.

Modest returns on equity

ROE at ~3.3% remains low for a growing pharma business, suggesting limited monetization of invested capital. Low ROE can reflect heavy asset intensity or long payback on capex, implying shareholder returns may remain muted absent meaningful margin expansion or higher asset turnover.

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	2.23B	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: Neutral
• Last Price: 319.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 319.9 is above the 20-day moving average (MA) of 287.49, above the 50-day MA of 311.75, and below the 200-day MA of 380.96, indicating a neutral trend. The MACD of -3.84 indicates Negative momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 91.31 is Negative, 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	₹675.02B	28.59	―	0.80%	9.32%	11.25%
DRREDDY	70 Outperform	₹1.03T	18.28	―	0.63%	14.10%	9.72%
SANOFI	67 Neutral	₹92.96B	26.09	―	4.73%	-19.94%	-22.49%
GLAXO	63 Neutral	₹407.62B	42.67	―	2.16%	4.17%	41.51%
SHILPAMED	54 Neutral	₹61.08B	44.52	―	0.16%	10.46%	111.15%
GLENMARK	53 Neutral	₹552.56B	51.88	―	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 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.

Shilpa Medicare Secures European Authorization for Rotigotine Patch

Shilpa Medicare Limited has received initial authorization from Europe for its Rotigotine transdermal patch, a generic version of Neupro®, used to treat Restless Legs Syndrome and Parkinson’s disease. This milestone marks Shilpa’s first transdermal patch to gain marketing authorization in Europe, with a targeted launch in FY27, and represents a significant step in expanding its market presence in the European pharmaceutical sector.

Shilpa Medicare’s Telangana Facility Completes USFDA Inspection

Shilpa Medicare Limited announced the completion of a USFDA inspection at its Unit IV facility in Jadcherla, Telangana, which resulted in eight observations but no repeat issues. The facility’s contribution to the company’s US sales is minimal, accounting for less than 1% of the total business for the first half of FY25-26. The company plans to address the observations comprehensively within the stipulated timeframe, maintaining its compliance with international regulatory standards.