Recent Price Movement and Market Context
On 27 Jan 2026, Shilpa Medicare’s share price slipped by 1.65%, underperforming its sector by 1.53%. This decline comes despite a broader market recovery, with the Sensex rebounding from an early negative opening to close 0.35% higher at 81,824.37 points. While mega-cap stocks led the market gains, Shilpa Medicare’s shares continued to trade below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In comparison, the Sensex remains below its 50-day moving average but above its 200-day moving average, reflecting a mixed but cautiously optimistic market environment. Other indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows today, indicating sector-specific pressures in certain areas of the market.
Long-Term Performance and Valuation Metrics
Over the past year, Shilpa Medicare has underperformed significantly, delivering a negative return of 26.66%, while the Sensex posted a positive return of 8.57%. The stock’s 52-week high was Rs.501.6, highlighting the extent of the decline from its peak. This underperformance is reflected in its current Mojo Score of 29.0 and a Mojo Grade of Strong Sell, which was downgraded from Sell on 19 Nov 2025.
The company’s market capitalisation grade stands at 3, indicating a relatively modest market cap within its sector. Despite the recent price weakness, the stock is trading at a discount compared to its peers’ average historical valuations, with an enterprise value to capital employed ratio of 1.9, which some may interpret as an attractive valuation metric.
Our current Stock of the Month is out! This Large Cap from Automobiles - Passenger Cars emerged as the single best opportunity from our elite universe. Get the details now!
- - Current monthly selection
- - Single best opportunity
- - Elite universe pick
Fundamental Analysis and Financial Trends
Shilpa Medicare’s long-term fundamental strength remains subdued, with an average Return on Capital Employed (ROCE) of 4.57%. Over the last five years, the company’s net sales have grown at an annual rate of 6.95%, while operating profit has increased at a slower pace of 3.16%. These figures suggest modest growth and limited expansion in profitability over the medium term.
Despite these challenges, the company has reported positive results for nine consecutive quarters, with the half-year ROCE reaching a peak of 8.57%. The operating profit to interest ratio for the quarter stands at a healthy 6.91 times, indicating a comfortable buffer to cover interest expenses. Additionally, the dividend payout ratio for the year has been recorded at 14.01%, reflecting a consistent return to shareholders.
Profitability and Institutional Participation
While the stock price has declined, Shilpa Medicare’s profits have risen sharply by 194.5% over the past year. This divergence is reflected in a low PEG ratio of 0.2, which may indicate that the market has not fully priced in the company’s profit growth. Institutional investors have increased their stake by 0.71% in the previous quarter, now collectively holding 19.3% of the company’s shares. This increased participation by institutions suggests a degree of confidence in the company’s fundamentals despite the share price weakness.
Holding Shilpa Medicare Ltd from Pharmaceuticals & Biotechnology? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Metrics
To summarise, Shilpa Medicare Ltd’s current share price of Rs.261.6 represents a 52-week low, down nearly 48% from its high of Rs.501.6. The stock has experienced a sustained decline over the past 12 trading days, with a cumulative loss of 17.35%. Its long-term growth rates for sales and operating profit remain modest, while profitability metrics such as ROCE and operating profit to interest ratio show some improvement in recent periods.
Institutional investors have marginally increased their holdings, and the company’s profits have grown substantially over the last year, despite the share price underperformance. The stock’s valuation metrics indicate it is trading at a discount relative to peers, though its Mojo Grade of Strong Sell reflects ongoing concerns about its fundamental strength and market performance.
Market and Sector Comparison
Compared to the broader market, Shilpa Medicare’s performance has lagged significantly. While the BSE500 index generated returns of 8.62% over the last year, the company’s shares declined by 26.66%. This divergence highlights the challenges faced by the stock within the Pharmaceuticals & Biotechnology sector, which itself has seen mixed performance with some indices hitting new lows alongside Shilpa Medicare.
The company’s current market cap grade of 3 places it in a mid-tier category, and its Mojo Score of 29.0 is among the lower ranks, reinforcing the cautious stance reflected in its recent downgrade from Sell to Strong Sell.
Conclusion
Shilpa Medicare Ltd’s fall to a 52-week low of Rs.261.6 underscores a period of sustained price weakness amid modest fundamental growth and mixed market conditions. While profitability metrics and institutional interest show some positive signs, the stock continues to trade below all major moving averages and has underperformed the broader market and its sector peers over the past year.
Investors and market participants will note the company’s valuation discount and recent profit growth, but the prevailing market sentiment remains cautious as reflected in its current grading and price action.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
