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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Marksans Pharma

Akums Drugs

Sanofi Consumer

Viyash Scientifi

Alivus Life

Concord Biotech

Corona Remedies

Shilpa Medicare

Strides Pharma

P & G Health Ltd

Blue Jet Health

Why is Shilpa Medicare Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.44%

Poor long term growth as Net Sales has grown by an annual rate of 11.30% and Operating profit at 19.78% over the last 5 years

With a growth in Net Profit of 99.09%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 11 consecutive quarters
ROCE(HY) Highest at 10.52%
PBDIT(Q) Highest at Rs 119.71 cr.
PBT LESS OI(Q) Highest at Rs 93.75 cr.

With ROCE of 9.8, it has a Expensive valuation with a 3.5 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.89%, its profits have risen by 114.6% ; the PEG ratio of the company is 0.4

Majority shareholders : Non Institution

Consistent Returns over the last 3 years

Along with generating 7.89% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shilpa Medicare should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shilpa Medicare for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shilpa Medicare

7.95%

0.21

37.70%

Sensex

-5.95%

-0.44

13.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.30%

EBIT Growth (5y)

19.78%

EBIT to Interest (avg)

2.54

Debt to EBITDA (avg)

3.81

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.43

Tax Ratio

17.60%

Dividend Payout Ratio

Pledged Shares

8.73%

Institutional Holding

19.66%

ROCE (avg)

5.01%

ROE (avg)

3.58%

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

4.14

EV to EBIT

36.07

EV to EBITDA

26.13

EV to Capital Employed

3.54

EV to Sales

7.38

PEG Ratio

0.41

Dividend Yield

0.09%

ROCE (Latest)

9.82%

ROE (Latest)

8.89%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

No Trend

Bullish

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

30What is working for the Company

ROCE(HY)

Highest at 10.52%

PBDIT(Q)

Highest at Rs 119.71 cr.

PBT LESS OI(Q)

Highest at Rs 93.75 cr.

NET SALES(Q)

Highest at Rs 436.99 cr

PAT(Q)

Highest at Rs 85.40 cr.

EPS(Q)

Highest at Rs 5.51

-2What is not working for the Company

INTEREST(Q)

At Rs 13.66 cr has Grown at 27.90%

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Here's what is working for Shilpa Medicare

Profit After Tax (PAT) - Quarterly

At Rs 85.40 cr has Grown at 81.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 47.13 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 119.71 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 93.75 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 93.75 cr has Grown at 72.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 54.39 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 436.99 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 436.99 cr has Grown at 22.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 358.13 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 85.40 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 5.51

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Shilpa Medicare

Interest - Quarterly

At Rs 13.66 cr has Grown at 27.90%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)