Shilpa Medicare Ltd (SHILPAMED) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Supriya Lifesci.

Sequent Scien.

Strides Pharma

Marksans Pharma

Zota Health Care

Aarti Pharma

Shilpa Medicare

FDC

Akums Drugs

SPARC

Sudeep Pharma

Why is Shilpa Medicare Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.57%

Poor long term growth as Net Sales has grown by an annual rate of 6.95% and Operating profit at 3.16% over the last 5 years

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.38% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Shilpa Medicare for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shilpa Medicare

-22.38%

-0.52

43.27%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.95%

EBIT Growth (5y)

3.16%

EBIT to Interest (avg)

2.03

Debt to EBITDA (avg)

4.13

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.42

Tax Ratio

19.69%

Dividend Payout Ratio

Pledged Shares

7.92%

Institutional Holding

18.59%

ROCE (avg)

4.59%

ROE (avg)

2.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.66

EV to EBIT

29.25

EV to EBITDA

19.73

EV to Capital Employed

2.34

EV to Sales

5.26

PEG Ratio

0.20

Dividend Yield

0.15%

ROCE (Latest)

8.01%

ROE (Latest)

6.73%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

ROCE(HY)

Highest at 8.57%

OPERATING PROFIT TO INTEREST(Q)

Highest at 6.91 times

DPR(Y)

Highest at 14.01%

NET SALES(Q)

Highest at Rs 369.97 cr

PBDIT(Q)

Highest at Rs 108.28 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 29.27%

PBT LESS OI(Q)

Highest at Rs 62.68 cr.

PAT(Q)

At Rs 44.07 cr has Grown at 27.9% (vs previous 4Q average

-5What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -19.06 Cr

INTEREST(Latest six months)

At Rs 34.45 cr has Grown at 31.29%

Loading Valuation Snapshot...

Here's what is working for Shilpa Medicare

Operating Profit to Interest - Quarterly

Highest at 6.91 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 62.68 cr has Grown at 65.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 37.80 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 369.97 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 108.28 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 29.27%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 62.68 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 44.07 cr has Grown at 27.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 34.45 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Dividend Payout Ratio (DPR) - Annually

Highest at 14.01%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Shilpa Medicare

Interest - Latest six months

At Rs 34.45 cr has Grown at 31.29%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Cash Flow - Annually

Lowest at Rs -19.06 Cr

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)