Shilpa Medicare Share Soars 179% in CY24; Antique Stock Broking Sees More Growth Ahead
Shilpa Medicare Share Surge in CY24
Shares of Shilpa Medicare (SML) skyrocketed 179% in CY24, hitting a new peak of Rs 922. This significant rise follows coverage initiation by Antique Stock Broking, which issued a 'Buy' rating and a target price of Rs 1,300, translating to a P/E ratio of 25x on H1FY27 earnings. Over the past month, this pharma smallcap has outperformed the market, rising 36%, compared to a 3.3% increase in the BSE Sensex.
Core Operations and Growth Drivers
SML is engaged in the production of Active Pharmaceutical Ingredients (API), Formulation Development, and Contract Manufacturing. Notably, the firm specializes in Oncology and Non-Oncology APIs. With a commitment to meeting international standards, SML positions itself among the premier suppliers in the pharmaceutical industry.
- Expanding oncology formulation portfolio
- Growth potential from upcoming genericized products
- Investment in Contract Development and Manufacturing Organization (CDMO)
Regulatory Support and Future Outlook
Last year, government initiatives such as the National Policy on Research in the Pharma-MedTech Sector and production-linked incentives aim to bolster local production. With significant capex directed towards enhancing core capabilities and a promising pipeline, analysts forecast an impressive revenue CAGR of about 34% by FY27, alongside strong EPS growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.