BSE:530549

Stock Analysis Report

Executive Summary

Shilpa Medicare Limited, together with its subsidiaries, manufactures and sells generic active pharmaceutical ingredients (APIs) and formulations in India, the United States, Europe, and internationally..

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Shilpa Medicare's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.3%

530549

1.4%

IN Pharmaceuticals

1.4%

IN Market


1 Year Return

-34.4%

530549

-20.0%

IN Pharmaceuticals

2.3%

IN Market

Return vs Industry: 530549 underperformed the Indian Pharmaceuticals industry which returned -20% over the past year.

Return vs Market: 530549 underperformed the Indian Market which returned 2.3% over the past year.


Shareholder returns

530549IndustryMarket
7 Day-2.3%1.4%1.4%
30 Day-2.1%-7.1%2.7%
90 Day-27.5%-5.2%-1.4%
1 Year-34.1%-34.4%-19.3%-20.0%4.3%2.3%
3 Year-56.4%-56.7%-27.3%-28.8%20.9%14.9%
5 Year-2.5%-3.4%-11.9%-14.6%41.2%28.2%

Price Volatility Vs. Market

How volatile is Shilpa Medicare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shilpa Medicare undervalued compared to its fair value and its price relative to the market?

22.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 530549 (₹257.05) is trading above our estimate of fair value (₹13.08)

Significantly Undervalued: 530549 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 530549 is poor value based on its PE Ratio (22.2x) compared to the Pharmaceuticals industry average (15.6x).

PE vs Market: 530549 is poor value based on its PE Ratio (22.2x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: 530549 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 530549 is overvalued based on its PB Ratio (1.7x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Shilpa Medicare forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 530549's forecast earnings growth (23.1% per year) is above the savings rate (7.6%).

Earnings vs Market: 530549's earnings (23.1% per year) are forecast to grow faster than the Indian market (18.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 530549's revenue (15.4% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 530549's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 530549's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Shilpa Medicare performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 530549's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: 530549's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 530549 had negative earnings growth (-19.1%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.4%).


Return on Equity

High ROE: 530549's Return on Equity (7.7%) is considered low.


Return on Assets

ROA vs Industry: 530549's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 530549's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Shilpa Medicare's financial position?


Financial Position Analysis

Short Term Liabilities: 530549's short term assets (₹5.5B) exceeds its short term liabilities (₹2.5B)

Long Term Liabilities: 530549's short term assets (5.5B) exceeds its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: 530549's debt to equity ratio (14.1%) is considered satisfactory

Reducing Debt: 530549's debt to equity ratio has reduced from 24.2% to 14.1% over the past 5 years.

Debt Coverage: 530549's debt is well covered by operating cash flow (82.8%).

Interest Coverage: 530549's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet

Inventory Level: 530549 has a high level of physical assets or inventory.

Debt Coverage by Assets: 530549's debt is covered by short term assets (assets are 3.251270x debt).


Next Steps

Dividend

What is Shilpa Medicare's current dividend yield, its reliability and sustainability?

0.39%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 530549's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 530549's dividend (0.39%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

Stable Dividend: 530549's dividends per share have been stable in the past 10 years.

Growing Dividend: 530549's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.6%), 530549's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 530549's dividends in 3 years are forecast to be thoroughly covered by earnings (4.7% payout ratio).


Next Steps

Management

What is the CEO of Shilpa Medicare's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average board tenure


CEO

Vishnukanth Bhutada (57yo)

0yrs

Tenure

₹74,737,000

Compensation

Mr. Vishnukanth Chaturbhuj Bhutada, B. Pharm. serves as the Managing Director of Shilpa Medicare Limited. Mr. Bhutada joined Shilpa Medicare Limited in November 1987. He serves as the Director at Maia Phar ...


CEO Compensation Analysis

Compensation vs. Market: Vishnukanth's total compensation ($USD1.05M) is above average for companies of similar size in the Indian market ($USD324.68K).

Compensation vs Earnings: Vishnukanth's compensation has been consistent with company performance over the past year.


Board Age and Tenure

6.2yrs

Average Tenure

51yo

Average Age

Experienced Board: 530549's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Vinay Konaje (46yo)

    Business Head of Biologics

    • Tenure: 0yrs
  • Vishnukanth Bhutada (57yo)

    MD & Director

    • Tenure: 0yrs
    • Compensation: ₹74.74m
  • Rajkumar Somani (52yo)

    Vice President

    • Tenure: 0yrs
  • Janak Kastia (58yo)

    CEO - US Formulations and GM of Marketing & Business Development - USA & Global Generic Cos

    • Tenure: 0yrs
    • Compensation: ₹9.56m
  • Pramod Kumar (56yo)

    Senior Vice President of Technical

    • Tenure: 0yrs
    • Compensation: ₹6.06m
  • Sharath Kalakota (52yo)

    VP of Technical & Whole-time Director

    • Tenure: 0yrs
  • Sushil Bajaj

    CFO & Compliance Officer

    • Tenure: 1.9yrs
    • Compensation: ₹4.09m
  • Rajyashri Ramakrishnan (55yo)

    Chief Scientific Officer of Biologicals

    • Tenure: 0yrs
  • V.V. Chaitanya

    Company Secretary

    • Tenure: 0yrs

Board Members

  • Amit Chander (40yo)

    Independent Director

    • Tenure: 0.5yrs
  • Pramod Kasat (50yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: ₹20.00k
  • Om Inani (63yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹20.00k
  • Vishnukanth Bhutada (57yo)

    MD & Director

    • Tenure: 0yrs
    • Compensation: ₹74.74m
  • Rajender Reddy (55yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: ₹20.00k
  • Naresh Patwari (41yo)

    Non-Executive Director

    • Tenure: 2.8yrs
  • Sharath Kalakota (52yo)

    VP of Technical & Whole-time Director

    • Tenure: 0yrs
  • Sirisha Chintapalli (39yo)

    Independent Director

    • Tenure: 0.5yrs

Company Information

Shilpa Medicare Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shilpa Medicare Limited
  • Ticker: 530549
  • Exchange: BSE
  • Founded: 1987
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹21.971b
  • Shares outstanding: 81.53m
  • Website: https://www.vbshilpa.com

Location

  • Shilpa Medicare Limited
  • Shilpa House
  • #12-6-214/A1
  • Raichur
  • Karnataka
  • 584135
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530549BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1995
SHILPAMEDNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1995
530549BSE (Mumbai Stock Exchange)INR1ININRNov 2015
SHILPAMEDNSEI (National Stock Exchange of India)INR1ININRNov 2015

Biography

Shilpa Medicare Limited, together with its subsidiaries, manufactures and sells generic active pharmaceutical ingredients (APIs) and formulations in India, the United States, Europe, and internationally..  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:38
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.