Recent Price Movement and Market Context
On 22 January 2026, Shilpa Medicare Ltd’s share price closed near its 52-week low, following a continuous decline over the past ten trading sessions. During this period, the stock has lost approximately 15.74% in value. The intraday high on the day was ₹283.15, representing a 3.83% increase from the previous close, yet the overall trend remains subdued. The stock underperformed its sector by 3.23% on the same day, signalling relative weakness compared to its peers.
Technical indicators further highlight the bearish momentum, with the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day. This broad-based weakness across multiple timeframes suggests a lack of upward price support in the near term.
In contrast, the broader market indices showed resilience. The Nifty index closed at 25,289.90, up 0.53% on the day, though it remains 4.28% below its own 52-week high of 26,373.20. Notably, all market capitalisation segments recorded gains, with the Nifty Midcap 100 leading with a 1.34% increase, underscoring the relative underperformance of Shilpa Medicare within the current market environment.
Long-Term Performance and Valuation Metrics
Over the past year, Shilpa Medicare Ltd has delivered a total return of -33.22%, significantly lagging behind the Sensex, which posted a positive return of 7.73% during the same period. The stock’s 52-week high was ₹500, indicating a steep decline of nearly 47% from that peak.
The company’s fundamental profile has contributed to this performance. It holds a Mojo Score of 29.0 and a Mojo Grade of Strong Sell as of 19 November 2025, downgraded from a Sell rating. The Market Cap Grade stands at 3, reflecting modest market capitalisation relative to peers.
Financially, Shilpa Medicare’s long-term return on capital employed (ROCE) averages 4.57%, which is considered weak within the Pharmaceuticals & Biotechnology sector. Net sales have grown at an annualised rate of 6.95% over the last five years, while operating profit growth has been even more subdued at 3.16% annually. These figures indicate limited expansion and profitability improvement over the medium term.
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Profitability and Operational Highlights
Despite the stock’s price decline, Shilpa Medicare has reported positive quarterly results for nine consecutive quarters. The company’s half-year ROCE peaked at 8.57%, indicating some improvement in capital efficiency in recent periods. Additionally, the operating profit to interest coverage ratio reached a high of 6.91 times, reflecting a comfortable buffer to service debt obligations.
The dividend payout ratio (DPR) for the year reached 14.01%, signalling a degree of shareholder return despite the challenging market conditions. The company’s valuation metrics also suggest an attractive entry point relative to peers, with an enterprise value to capital employed ratio of 1.9, which is lower than the sector average.
Profit growth has been notable over the past year, with profits rising by 194.5%, even as the stock price declined. This divergence is reflected in a low PEG ratio of 0.2, indicating that the stock’s price does not fully reflect recent earnings growth.
Institutional Shareholding Trends
Institutional investors have increased their stake in Shilpa Medicare by 0.71% over the previous quarter, collectively holding 19.3% of the company’s shares. This increased participation by institutional players suggests a measured confidence in the company’s fundamentals, given their typically rigorous analysis and resource capabilities.
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Summary of Key Metrics
To summarise, Shilpa Medicare Ltd’s stock has reached a critical 52-week low of ₹265.25 after a sustained period of price decline. The stock’s underperformance relative to the broader market and sector peers is underpinned by modest long-term growth rates and subdued capital returns. However, recent improvements in profitability metrics and increased institutional interest provide a nuanced view of the company’s current standing.
While the stock trades at a discount to historical valuations and peers, it remains below all major moving averages, reflecting prevailing market caution. The divergence between profit growth and share price performance highlights a complex valuation environment for Shilpa Medicare within the Pharmaceuticals & Biotechnology sector.
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