Shilpa Medicare Ltd shares jumped around 12 percent today with an intra-day high of Rs 260.70. Currently, the scrip is trading at a price of Rs 258 which is up 10.7 percent in comparison to the previous closing price of Rs 233.35. Last week, the stock has provided returns of around 11.5 percent to its stakeholders.
In a recent filing with the exchange, the company announced that it has received the U.S. Food and Drug Administration (USFDA) final approval for its ANDA, Apremilast Tablets which are primarily used for the treatment of adult patients with active psoriatic arthritis.
Shilpa Medicare Ltd is a specialty and generic drug manufacturer which offers a product range of over 44 oncology and non-oncology APIs. The company uses nano and micro technology in its drug identification and formulation.
Operating segments of the company are Pharmaceutical products and services, which also form a major revenue-generating segment, and another one is Power sales. Geographically, the group derives revenue domestically as well as from foreign sources.
Having a quick glance at the financials of the company, it can be observed that the revenues have marginally moved down from Rs 262.91 crores in Q2 to Rs 262.5 crores in Q3. The company has net losses in the past two quarters but has comparatively become less negative by narrowing down its losses from Rs 16.38 crores in Q2 to 6.95 crores in Q3.
The profitability ratios of the company have also decreased on a YoY basis with ROE figures moving from 10.41 percent in FY20-21 to 3.67 percent in FY21-22. ROCE figures shifted down from 10.73 percent in FY20-21 to 5.94 percent in FY21-22.
The debt to equity ratio of the company has showcased a positive scenario with reducing numbers from 0.57 in FY20-21 to 0.37 in FY21-22.
As per the quarter ending December 2022, promoters hold a constant 50.01 percent stake in the company. Whereas, the FIIs have increased their stake from 10.98 percent in Q2 to 11.84 percent in Q3.
Written by Amit Madnani