Shilpa Medicare (SHILPAMED)
TurnaroundFairStock Score: 34/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹822 |
| Market Cap | ₹16,076.83 Cr |
| P/E Ratio | 54.04 |
| ROCE | 7.82% |
| ROE | 2.31% |
| Dividend Yield | 0.07% |
| Profit Growth | 387.41% |
| Debt/Equity | 0.25 |
| Sales Growth | 322.7% |
| Promoter Holding | 40.13% |
| 52-Week Range | ₹259.5 — ₹1,095.65 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹132.46 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
Let me start with what I like. Shilpa Medicare has momentum: sales grew 28.32% and profits grew 69.92%, and the latest quarter shows sales of ₹410 Cr with net profit of ₹45 Cr. The balance sheet is conservative, with debt/equity of only 0.24, and a Piotroski F-score of 7/9 suggests fundamentals are improving. Promoter holding of 40.13% at least keeps management aligned. But I do not pay for growth when the underlying business earns low returns on capital. This company earns just 2.31% ROE and 7.82% ROCE. With book value at ₹134.92, the market is paying ₹427.60, or 3.17 times book, for a business that historically turns that book into very modest income. That is a Graham red flag. A 37.22 P/E is fine only if the current 69.92% profit growth is durable, but such high growth rates often revert to mean, especially in pharma. PEG of 0.76 looks tempting, but PEG is only useful when the earnings base is quality and sustainable. The falling share price from ₹825.40 to ₹427.60 within the 52-week range tells me the market has already questioned the story. Dividend yield of 0.15% means I am not being paid to wait. I cannot identify a durable moat from these numbers. Pharma requires regulatory strengths and molecule-level visibility, and I have no evidence here. The low ROE and thin returns mean even reinvested earnings may not create much value. FairStock score of 33/100 labels this risky, and I agree. This is a fast grower, not a stalwart. I would need proof that higher sales are converting into higher returns on capital before I can call it a compounding machine. For now, it is a show-me story at an optimistic price.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer