The share price of this Pharma firm rose by 16.7 percent to an intraday high of Rs 675 per share on Friday after they announced a partnership with Unicycive Therapeutics Inc. to provide Contract Development and Manufacturing Organization (CDMO) services.
With a market capitalization of Rs 6,483.05 crores, the shares of Shilpa Medicare Limited surged around 15 percent at 11:45 am trading at Rs 663.35 apiece on Friday’s morning market hours. Also, the stock has hit an all-time 52-week high of Rs 675.00 apiece as of today.
What happened:
According to Shilpa’s stock exchange filings, the firm has announced that they have partnered with Unicycive Therapeutics Inc to provide comprehensive CDMO services, which include developing and supplying APIs and the finished dosage form of the medicines.
The filings also mention that due to positive results from a clinical trial of Oxylanthanum Carbonate (OLC) for treating hyperphosphatemia in kidney disease patients, Unicycive has signed a long-term agreement with Shilpa Medicare Limited.
Unicycive will place a binding order for OLC tablets by June 30, 2025, with additional orders between December 31, 2025, and June 30, 2026, according to the exchange filings.
Besides the supply agreement, Shilpa Medicare Limited expects to receive USD 10 million for product approval, launch, and filing. Additionally, Unicycive will fund a new manufacturing area at Shilpa’s site due to expected higher product demand, as per the exchange filings.
Financials:
Reviewing the financials of Shilpa Medicare on a year-on-year basis, the revenues rose by 10.1 percent from Rs 1,046 crores in FY23 to Rs 1,152 crores in FY24. In the same time frame, the net profits of the firm demonstrated a transition from a net loss of Rs 31 crores to a net profit of Rs 32 crores.
Ratios:
In terms of a few ratios for the year 2024, the net profit margin stood at 8.69 percent. Additionally, the Profit Before Tax (PBT) margin stood at 12.29 percent and the Return on capital employed was at 3 percent.
The EBITDA of Shilpa grew by 47 percent from Rs 49.9 crores in Q1FY24 to Rs 72.6 crores in Q4FY24.
Revenue Breakdown:
The latest Q4FY24 revenue breakdown indicates that 4 percent of sales were generated from Biologicals, 33 percent from formulations, 62 percent from API, and the remaining 1 percent from other sources.
Future Plans:
Shilpa Limited has future plans to invest in Contract Development and Manufacturing Organization (CDMO) fermentation projects with large capacities in the near future.
Share Price Movement:
The shares of Shilpa Medicare have generated a multi-bagger return of 119 percent over the past year and 103 percent over the past 6 months.
Shareholding Pattern:
As of March 2024, Shilpa’s shareholding pattern stood at 50.01 percent for promoters, 42.71 percent for the public, 5.69 percent for foreign institutional investors, and 1.59 percent for domestic institutional investors.
About the Company:
Incorporated in 1987, Shilpa Medicare is a pharma company that manufactures niche APIs, intermediates, and formulations and also undertakes contract research and manufacturing services for some of its customers. Shilpa is also engaged in the manufacturing and sale of Lenvatinib Capsules under the brand name Lenshil.
Written By Zahal
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