Shares of this small cap pharmaceutical company gained 2.84 percent after the company received approval for manufacture and sale of Oral Mucositis Spray.
Shares of Shilpa Medicare Ltd closed at Rs. 347.05 per share, up by 2.84 percent from previous closing price of Rs. 337.35 per share.
Such bullish stock price movements were observed after the company through a regulatory filing on Bombay stock exchange (BSE) announced that they received approval from the Office of the Directorate of Ayurveda and Unani Services for manufacture and sales of Oral Mucositis Spray.
Spray treatment option is available for the first time in India for Oral Mucositis and it will be sold under brand name “ORAAL”. The composition of ORAAL is protected by a granted patent in India until November 2033 and it also has been accepted and approved by the Indian Dental Association (IDA).
The company claims that ORAAL can be used for the treatment of all grades of Mucositis. ORAAL is backed by required scientific proof for the treatment of Oral Mucositis.
Looking at the financial statements, company’s revenue has decreased marginally by 0.38 percent to Rs. 260.18 crores in Q1FY24 from Rs. 261.16 crores in Q1FY23, in the same time period net profit increased by 38.82 percent to Rs. 1.18 crores from Rs. 0.85 crores.
Talking about the financial ratios, the company reported return on equity (ROE) of -1.71 percent and return on capital employed (ROCE) of 0.8 percent in the last financial year.
Shilpa Medicare is involved in the business of manufacturing high quality Active Pharmaceuticals Ingredients (APIs), Intermediates, Formulations, New Drug delivery system, Peptides, Biotech products, and Specialty chemicals using sophisticated technology. The company is one of the world’s leading suppliers of Oncology/ Non Oncology APIs and intermediates.
Written by: Vinit Israni
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