Shilpa Medicare Share Performance and Future Outlook in Pharma Sector
Shilpa Medicare Share Performance
Shilpa Medicare's stock has gained significant traction, reaching a new high of Rs 922, with a 4% rise noted during Monday’s intra-day trading. This surge comes after Antique Stock Broking initiated coverage with a 'Buy' rating and a target price of Rs 1,300, which corresponds to a price-to-earnings (P/E) multiple of 25x on forecasts for H1FY27.
Company Profile and Growth Drivers
In the past month, Shilpa Medicare has outperformed the market with a 36% increase, compared to a 3.3% rise in the BSE Sensex. Throughout CY24, the stock has zoomed by 179%, significantly outperforming the benchmark index's 15% rally. The company specializes in manufacturing Active Pharmaceutical Ingredients (APIs) and formulations and is recognized as a key player in supplying both oncology and non-oncology APIs internationally.
Expanding into Oncology
SML is focused on enhancing its formulation portfolio, particularly in oncology, in response to rising cancer incidence globally. Following the government's recent initiatives to bolster the pharma sector, SML anticipates that its diversification and expansion efforts will enable substantial growth in its revenue streams from generic drugs, especially as many products enter the market between 2025 and 2028.
Future Outlook and Strategic Investments
With a strong pipeline for Contract Development and Manufacturing Organization (CDMO) and novel drug delivery systems, SML has positioned itself for significant growth. Analysts predict a compound annual growth rate (CAGR) of 34% in revenue over the next two years, alongside an EBITDA margin near 35% by FY27.
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.