Shilpa Medicare surges, owing to compliance for two plants

Shilpa Medicare received GMP (Goods Manufacturing Practice) compliance certificate for two API sites from Japan. The company’s unit one in Deosugur Industrial Area, Raichur, Karnataka; and unit two at Raichur Industrial Growth Centre, Chicksugur, Karnataka got compliance certificate. Shilpa Medicare received compliance certificate for two API sites from Pharmaceuticals and Medical Devices Agency (PMDA).

On financial front, Shilpa Medicare’s revenue increased by 28.31 per cent to Rs 198 crore in Q3FY16 as compared to same period in previous financial year. The company’s EBITDA too rose by 15.54 per cent to Rs 38.89 in Q3FY16 on a yearly basis. Its net profit also boosted by 65.15 per cent to 28.01 crore in Q3FY16 as compared to the same period in previous fiscal year.

The share price of Shilpa Medicare increased by 15.12 per cent on bourses in early trades; and is trading at Rs 481.45 on an intraday basis.

On valuation front, Shilpa Medicare is trading at Price to Earnings (P/E) ratio  of 38.01x times. The company’s trailing Earnings per Share (EPS) is at Rs 11.51. Meanwhile, it has current book value of Rs 70.94.

Shilpa Medicare is engaged in the business of manufacturing bulk drugs, intermediates; and wind power generation. The company is also engaged in formulation and product development, which are an interrelated and integrated part of the pharmaceutical product business. Its operating segments include bulk drug, intermediates and power. Shilpa Medicare develops, produces and markets a portfolio of around 50 generic medicines. The company offers a pipeline of oncology drugs and has a portfolio of around 25 products and a pipeline that addresses the needs of cancer treatment.