NSEI:SHILPAMED

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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 Analysis

Flawless balance sheet with proven track record.


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

Stable Share Price: SHILPAMED's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

SHILPAMED

0.8%

IN Pharmaceuticals

2.0%

IN Market


1 Year Return

46.2%

SHILPAMED

28.1%

IN Pharmaceuticals

-5.4%

IN Market

Return vs Industry: SHILPAMED exceeded the Indian Pharmaceuticals industry which returned 28.1% over the past year.

Return vs Market: SHILPAMED exceeded the Indian Market which returned -5.4% over the past year.


Shareholder returns

SHILPAMEDIndustryMarket
7 Day7.9%0.8%2.0%
30 Day-10.2%2.1%7.0%
90 Day63.0%12.2%18.6%
1 Year47.2%46.2%30.2%28.1%-3.5%-5.4%
3 Year-25.9%-26.5%7.2%4.1%1.0%-3.8%
5 Year10.6%9.3%-9.0%-12.3%25.6%15.9%

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?

26.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHILPAMED (₹508.75) is trading above our estimate of fair value (₹17.14)

Significantly Below Fair Value: SHILPAMED is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHILPAMED is poor value based on its PE Ratio (26.5x) compared to the IN Pharmaceuticals industry average (18.2x).

PE vs Market: SHILPAMED is poor value based on its PE Ratio (26.5x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: SHILPAMED is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SHILPAMED is overvalued based on its PB Ratio (3.1x) compared to the IN Pharmaceuticals industry average (1.6x).


Next Steps

Future Growth

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

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHILPAMED's forecast earnings growth (18.8% per year) is above the savings rate (7.2%).

Earnings vs Market: SHILPAMED's earnings (18.8% per year) are forecast to grow slower than the Indian market (18.9% per year).

High Growth Earnings: SHILPAMED's earnings are forecast to grow, but not significantly.

Revenue vs Market: SHILPAMED's revenue (14.1% per year) is forecast to grow faster than the Indian market (7.3% per year).

High Growth Revenue: SHILPAMED's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHILPAMED's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Shilpa Medicare performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHILPAMED has a high level of non-cash earnings.

Growing Profit Margin: SHILPAMED's current net profit margins (17.2%) are higher than last year (15.3%).


Past Earnings Growth Analysis

Earnings Trend: SHILPAMED's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: SHILPAMED's earnings growth over the past year (39.3%) exceeds its 5-year average (9.1% per year).

Earnings vs Industry: SHILPAMED earnings growth over the past year (39.3%) exceeded the Pharmaceuticals industry 18.6%.


Return on Equity

High ROE: SHILPAMED's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Shilpa Medicare's financial position?


Financial Position Analysis

Short Term Liabilities: SHILPAMED's short term assets (₹6.2B) exceed its short term liabilities (₹4.1B).

Long Term Liabilities: SHILPAMED's short term assets (₹6.2B) exceed its long term liabilities (₹2.6B).


Debt to Equity History and Analysis

Debt Level: SHILPAMED's debt to equity ratio (25%) is considered satisfactory.

Reducing Debt: SHILPAMED's debt to equity ratio has reduced from 34.4% to 25% over the past 5 years.

Debt Coverage: SHILPAMED's debt is well covered by operating cash flow (37.5%).

Interest Coverage: SHILPAMED's interest payments on its debt are well covered by EBIT (38.6x coverage).


Balance Sheet


Next Steps

Dividend

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

0.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHILPAMED's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.69%).

High Dividend: SHILPAMED's dividend (0.22%) is low compared to the top 25% of dividend payers in the Indian market (2.73%).


Stability and Growth of Payments

Stable Dividend: SHILPAMED is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: SHILPAMED is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SHILPAMED is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SHILPAMED's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average board tenure


CEO

Vishnukanth Bhutada (58yo)

no data

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 ($USD994.87K) is above average for companies of similar size in the Indian market ($USD358.82K).

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


Board Members

NamePositionTenureCompensationOwnership
Vishnukanth Bhutada
MD & Directorno data₹74.74m11.56% 4.9b
Sharath Kalakota
VP of Technical & Whole-time Director0.75yrno data0.034% 14.5m
Amit Chander
Independent Director1.25yrsno datano data
Pramod Kasat
Independent Director10.33yrs₹20.00k0.24% 103.0m
Piyush Goenka
Independent Director0.67yrno datano data
Om Inani
Non-Executive Chairmanno data₹20.00k3.77% 1.6b
Rajender Reddy
Independent Director12.08yrs₹20.00k0.031% 13.2m
Naresh Patwari
Non-Executive Director3.58yrsno datano data
Sirisha Chintapalli
Independent Director1.25yrsno datano data

2.4yrs

Average Tenure

51yo

Average Age

Experienced Board: SHILPAMED's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Shilpa Medicare Limited
  • Ticker: SHILPAMED
  • Exchange: NSEI
  • Founded: 1987
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹42.133b
  • 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.. It offers active pharmaceutical ingredients and bulk drug intermediates for oncology and other therapeutic areas; and formulations, 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 generation and sale of wind power. Shilpa Medicare Limited was founded in 1987 and is headquartered in Raichur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 13:01
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.