The shares of the generic pharmaceutical products manufacturer gained up to 8 percent after the company reached a significant milestone by completing Phase 1 Clinical Trial for Recombinant Human Albumin (rHA).
Shilpa Medicare (NS:SHME) Ltd has a market capitalization of Rs 6,950.49 crore, the shares were trading at Rs 708.70 per share, increasing around 7 percent as compared to the previous closing price of Rs 665.85 apiece.
Is Shilpa Medicare a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
Reason for Rise:-
According to the company filing, Shilpa Medicare Ltd announces the successful completion of its Phase 1 clinical trial for recombinant human albumin 20% (rHA). The positive results from this trial mark a significant milestone in the development of rHA, demonstrating its potential as a viable alternative to plasma-derived human serum albumin.
Moreover, after the success of Phase 1, the company is advancing rHA to Phase 3 clinical trials. SML expects to commence the Phase 3 clinical trials by Q4 of FY25 and the trials are likely to be completed over the next 9 to 12 months post-commencement. Filing for product approval in various geographies is expected to commence in FY26.
Financial condition:-
Looking into the company’s finances, Shilpa Medicare Ltd.’s revenue increased by 9 percent from Rs 264 Crore in Q4FY23 to 292 Crore in Q4FY24. During the same period, net profits increased from a loss of Rs 8 crore to a profit of Rs 24 crore.
Remarkable return:-
The stock has given a return of 82.09 percent in the last six months and a multi-bagger return of 121.57 percent this year. If an individual invested Rs 1 lakh eight months ago, it would be worth now Rs 2.21 lakh.
Ratio analysis:-
Examining the company’s crucial ratio, return on equity inclined from (1.82) percent in FY22-23 to 1.76 percent in FY23-24, while during the same time frame return on capital employed also inclined from 1.14 percent to 6.03 percent. In contrast, the net profit margin (NPM) stands at 3.18 percent in fiscal year 22-23.
Company profile:-
Shilpa Medicare Limited develops, manufactures, and sells cancer medications and formulations. The company offers a variety of goods, including APIs, formulations, biosimilars, ophthalmic and oral dissolving films, biochemical diagnostics, organic intermediates, pilot and production scales, and transdermal patches.
Written by:- Abhishek Singh
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