Shilpa Medicare Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 9:42 pm

Market Cap	7,491 Cr.
Current Price	765
High / Low	960/313
Stock P/E	130
Book Value	238
Dividend Yield	0.00 %
ROCE	5.25 %
ROE	1.71 %
Face Value	1.00
PEG Ratio	-5.71

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Shilpa Medicare Ltd

Competitors of Shilpa Medicare Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
MPS Pharmaa Ltd	8.20 Cr.	4.29	4.33/2.79		0.80	0.00 %	9.15 %	34.9 %	10.0
Gujarat Themis Biosyn Ltd	3,352 Cr.	308	390/147	63.6	20.5	0.22 %	45.0 %	33.8 %	1.00
Gujarat Terce Laboratories Ltd	60.9 Cr.	82.1	94.9/26.6	23.3	11.9	0.00 %	9.72 %	3.44 %	10.0
Gujarat Inject (Kerala) Ltd	34.4 Cr.	23.4	27.0/8.74	44.6	6.64	0.00 %	2.65 %	2.08 %	10.0
Godavari Drugs Ltd	87.5 Cr.	116	155/87.0	13.1	55.4	0.00 %	14.4 %	15.5 %	10.0
Industry Average	19,110.67 Cr	1,166.21		54.93	184.74	0.32%	16.14%	16.48%	6.30

All Competitor Stocks of Shilpa Medicare Ltd

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	237	295	272	341	261	263	262	264	260	313	287	292	293
Expenses	206	243	228	268	241	253	231	227	214	255	222	222	222
Operating Profit	31	52	44	73	20	10	31	37	46	58	65	70	70
OPM %	13%	18%	16%	21%	8%	4%	12%	14%	18%	19%	23%	24%	24%
Other Income	2	10	5	5	8	4	3	2	2	2	2	9	9
Interest	10	12	10	9	10	13	18	18	18	23	26	24	24
Depreciation	18	19	21	22	22	23	24	26	27	28	27	27	27
Profit before tax	5	31	19	46	-4	-22	-8	-4	3	9	14	28	29
Tax %	69%	37%	50%	36%	-158%	-17%	-13%	90%	64%	83%	67%	12%	51%
Net Profit	2	20	10	30	2	-19	-7	-8	1	2	5	24	14
EPS in Rs	0.20	2.45	1.10	3.40	0.10	-2.15	-0.76	-0.93	0.14	0.19	0.53	2.82	1.44

Last Updated: October 25, 2024, 12:25 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 25, 2024, 12:25 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	371	571	614	719	779	789	733	908	899	1,141	1,046	1,146	1,184
Expenses	301	455	485	566	614	634	585	688	718	940	947	907	920
Operating Profit	70	116	129	153	165	155	148	219	181	202	99	239	264
OPM %	19%	20%	21%	21%	21%	20%	20%	24%	20%	18%	9%	21%	22%
Other Income	5	6	5	5	15	22	33	17	90	21	17	15	22
Interest	2	4	4	7	3	3	4	5	22	41	59	92	97
Depreciation	15	23	21	29	31	37	42	44	54	80	96	108	108
Profit before tax	57	95	108	122	146	137	136	188	195	102	-38	54	80
Tax %	17%	21%	33%	19%	29%	25%	19%	18%	25%	41%	-19%	41%
Net Profit	47	75	73	99	104	103	110	155	146	61	-31	32	45
EPS in Rs	6.44	10.28	9.56	13.46	13.43	12.91	13.77	19.15	18.13	6.99	-3.75	3.67	4.98
Dividend Payout %	7%	5%	6%	4%	4%	5%	7%	6%	6%	16%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	59.57%	-2.67%	35.62%	5.05%	-0.96%	6.80%	40.91%	-5.81%	-58.22%	-150.82%	203.23%
Change in YoY Net Profit Growth (%)	0.00%	-62.24%	38.28%	-30.57%	-6.01%	7.76%	34.11%	-46.72%	-52.41%	-92.60%	354.05%

Shilpa Medicare Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	7%
5 Years:	9%
3 Years:	8%
TTM:	11%

Compounded Profit Growth
10 Years:	-9%
5 Years:	-20%
3 Years:	-33%
TTM:	582%

Stock Price CAGR
10 Years:	9%
5 Years:	22%
3 Years:	12%
1 Year:	119%

Return on Equity
10 Years:	6%
5 Years:	4%
3 Years:	1%
Last Year:	2%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:41 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	5	7	8	8	8	8	8	8	8	9	9	9	10
Reserves	316	389	539	639	979	1,077	1,189	1,321	1,471	1,814	1,775	1,800	2,318
Borrowings	132	118	189	221	241	191	194	390	846	683	798	937	491
Other Liabilities	99	163	169	194	244	223	218	270	308	370	323	347	299
Total Liabilities	551	678	905	1,062	1,472	1,499	1,610	1,989	2,632	2,876	2,904	3,093	3,117
Fixed Assets	181	294	316	580	492	534	558	650	1,111	1,342	1,368	1,385	1,693
CWIP	129	111	222	95	141	210	429	666	541	506	655	719	455
Investments	50	10	66	53	253	140	2	10	21	34	43	40	36
Other Assets	191	262	301	334	587	615	621	662	959	993	838	950	933
Total Assets	551	678	905	1,062	1,472	1,499	1,610	1,989	2,632	2,876	2,904	3,093	3,117

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	44	70	69	129	37	45	147	124	47	105	180	135
Cash from Investing Activity +	-95	-49	-196	-106	-257	-10	-196	-290	-404	-286	-232	-171
Cash from Financing Activity +	66	-28	136	-20	313	-61	10	176	436	83	46	47
Net Cash Flow	15	-8	9	3	93	-26	-39	10	79	-98	-7	11

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-62.00	-2.00	-60.00	-68.00	-76.00	-36.00	-46.00	-171.00	-665.00	-481.00	-699.00	-698.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	41	43	48	43	80	102	101	99	88	124	113	125
Inventory Days	126	143	147	161	187	194	266	298	427	338	280	309
Days Payable	87	108	85	101	110	106	115	122	91	139	125	157
Cash Conversion Cycle	80	79	111	104	157	189	253	275	425	323	268	277
Working Capital Days	81	50	67	64	122	144	141	134	222	182	164	168
ROCE %	15%	20%	18%	16%	14%	10%	9%	12%	8%	6%	1%	5%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	50.01%	50.01%	50.01%	50.01%	50.01%	50.01%	50.01%	50.01%	50.01%	50.01%	44.39%	44.33%
FIIs	14.59%	14.41%	14.41%	14.46%	15.32%	13.73%	10.26%	8.60%	8.52%	5.63%	9.08%	9.59%
DIIs	2.86%	1.93%	1.99%	1.76%	0.61%	0.54%	0.37%	0.41%	0.06%	1.65%	7.61%	8.18%
Public	32.54%	33.65%	33.59%	33.78%	34.04%	35.72%	39.36%	40.98%	41.41%	42.71%	38.91%	37.90%
No. of Shareholders	39,565	39,724	39,097	41,579	46,143	46,869	50,434	44,094	43,630	46,046	41,072	42,784

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Motilal Oswal Nifty Microcap 250 Index Fund	48,903	0.26	1.62	48,903	2024-12-22	0%
Motilal Oswal S&P BSE Healthcare ETF	405	0.14	0.01	48,903	2024-12-22	-99.17%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	1.00	1.00	1.00	1.00	1.00
Basic EPS (Rs.)	3.67	-3.74	7.26	18.13	19.15
Diluted EPS (Rs.)	3.67	-3.74	7.26	18.13	19.15
Cash EPS (Rs.)	16.66	7.88	16.59	24.77	24.37
Book Value[Excl.RevalReserv]/Share (Rs.)	208.37	204.41	208.65	180.00	162.09
Book Value[Incl.RevalReserv]/Share (Rs.)	208.37	204.41	208.65	180.00	162.09
Revenue From Operations / Share (Rs.)	132.67	120.98	131.97	110.53	111.36
PBDIT / Share (Rs.)	29.11	13.79	25.13	25.98	29.04
PBIT / Share (Rs.)	16.68	2.79	15.93	19.36	23.67
PBT / Share (Rs.)	6.81	-3.97	12.20	24.14	23.11
Net Profit / Share (Rs.)	4.23	-3.12	7.40	18.15	19.00
NP After MI And SOA / Share (Rs.)	3.67	-3.74	6.99	18.13	19.15
PBDIT Margin (%)	21.94	11.39	19.03	23.50	26.07
PBIT Margin (%)	12.57	2.30	12.07	17.51	21.25
PBT Margin (%)	5.13	-3.28	9.24	21.83	20.75
Net Profit Margin (%)	3.18	-2.58	5.60	16.41	17.06
NP After MI And SOA Margin (%)	2.76	-3.09	5.29	16.39	17.19
Return on Networth / Equity (%)	1.76	-1.82	3.32	9.99	11.74
Return on Capital Employeed (%)	6.03	1.14	6.10	7.75	12.22
Return On Assets (%)	1.03	-1.11	2.10	5.60	7.86
Long Term Debt / Equity (X)	0.30	0.16	0.19	0.32	0.12
Total Debt / Equity (X)	0.51	0.44	0.37	0.48	0.24
Asset Turnover Ratio (%)	0.38	0.36	0.12	0.36	0.44
Current Ratio (X)	1.26	0.98	1.45	1.52	1.52
Quick Ratio (X)	0.76	0.57	0.86	0.99	0.96
Inventory Turnover Ratio (X)	1.28	1.10	0.35	1.16	1.40
Dividend Payout Ratio (NP) (%)	0.00	0.00	14.78	0.00	13.21
Dividend Payout Ratio (CP) (%)	0.00	0.00	6.38	0.00	10.32
Earning Retention Ratio (%)	0.00	0.00	85.22	0.00	86.79
Cash Earning Retention Ratio (%)	0.00	0.00	93.62	0.00	89.68
Interest Coverage Ratio (X)	2.75	2.04	5.30	9.68	51.94
Interest Coverage Ratio (Post Tax) (X)	1.33	0.53	2.35	4.98	34.99
Enterprise Value (Cr.)	4901.02	2756.04	4084.09	3310.97	2271.15
EV / Net Operating Revenue (X)	4.26	2.62	3.57	3.67	2.50
EV / EBITDA (X)	19.40	23.03	18.73	15.63	9.59
MarketCap / Net Operating Revenue (X)	3.48	1.90	3.01	3.02	2.20
Retention Ratios (%)	0.00	0.00	85.21	0.00	86.78
Price / BV (X)	2.21	1.12	1.89	1.84	1.50
Price / Net Operating Revenue (X)	3.48	1.90	3.01	3.02	2.20
EarningsYield	0.01	-0.01	0.01	0.05	0.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Shilpa Medicare Ltd as of December 26, 2024 is: 539.66

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 26, 2024, Shilpa Medicare Ltd is Overvalued by 29.46% compared to the current share price 765.00

Intrinsic Value of Shilpa Medicare Ltd as of December 26, 2024 is: 416.76

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 26, 2024, Shilpa Medicare Ltd is Overvalued by 45.52% compared to the current share price 765.00

Last 5 Year EPS CAGR: -22.77%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (1,202.08 cr) compared to borrowings (417.77 cr), indicating strong financial stability. The company has shown consistent growth in sales (491.31 cr) and profit (106.31 cr) over the years.	The stock has a low average ROCE of 11.17%, which may not be favorable. The stock has a high average Working Capital Days of 128.25, which may not be favorable. The stock has a high average Cash Conversion Cycle of 211.75, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Shilpa Medicare Ltd:
1. Net Profit Margin: 3.18%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 6.03% (Industry Average ROCE: 16.01%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 1.76% (Industry Average ROE: 15.93%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 1.33
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 0.76
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 130 (Industry average Stock P/E: 44.77)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.51
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Shilpa Medicare Ltd. is a Public Limited Listed company incorporated on 20/11/1987 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L85110KA1987PLC008739 and registration number is 008739. Currently Company is involved in the business activities of Manufacture of medicinal substances used in the manufacture of pharmaceuticals: antibiotics, endocrine products, basic vitamins; opium derivatives; sulpha drugs; serums and plasmas; salicylic acid, its salts and esters; glycosides and vegetable alkaloids; chemically pure suger etc.. Company’s Total Operating Revenue is Rs. 356.95 Cr. and Equity Capital is Rs. 8.68 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Pharmaceuticals	12-6-214/A-1, Shilpa House, Raichur Karnataka 584135	info@vbshilpa.com http://www.vbshilpa.com

Management
Name	Position Held
Mr. Omprakash Inani	Chairman
Mr. Vishnukant C Bhutada	Managing Director
Mr. Kalakota Sharath Reddy	Whole Time Director
Mr. Hetal Madhukant Gandhi	Independent Director
Mr. Arvind Vasudeva	Independent Director
Dr. Kamal K Sharma	Independent Director
Dr. Anita Bandyopadhyay	Independent Woman Director

FAQ

What is the latest intrinsic value of Shilpa Medicare Ltd?

The latest intrinsic value of Shilpa Medicare Ltd as on 26 December 2024 is ₹539.66, which is 29.46% lower than the current market price of ₹765.00. The stock has a market capitalization of 7,491 Cr. and recorded a high/low of 960/313 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹2,318 Cr and total liabilities of ₹3,117 Cr.

What is the Market Cap of Shilpa Medicare Ltd?

The Market Cap of Shilpa Medicare Ltd is 7,491 Cr..

What is the current Stock Price of Shilpa Medicare Ltd as on 26 December 2024?

The current stock price of Shilpa Medicare Ltd as on 26 December 2024 is 765.

What is the High / Low of Shilpa Medicare Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Shilpa Medicare Ltd stocks is 960/313.

What is the Stock P/E of Shilpa Medicare Ltd?

The Stock P/E of Shilpa Medicare Ltd is 130.

What is the Book Value of Shilpa Medicare Ltd?

The Book Value of Shilpa Medicare Ltd is 238.

What is the Dividend Yield of Shilpa Medicare Ltd?

The Dividend Yield of Shilpa Medicare Ltd is 0.00 %.

What is the ROCE of Shilpa Medicare Ltd?

The ROCE of Shilpa Medicare Ltd is 5.25 %.

What is the ROE of Shilpa Medicare Ltd?

The ROE of Shilpa Medicare Ltd is 1.71 %.

What is the Face Value of Shilpa Medicare Ltd?

The Face Value of Shilpa Medicare Ltd is 1.00.