Reduce Shilpa Medicare, target price Rs 346: ICICI Securities

ICICI Securities has reduce call on Shilpa Medicare with a target price of Rs 346. The current market price of Shilpa Medicare is Rs 388.9. Time period given by analyst is one year when Shilpa Medicare Ltd. price can reach defined target.

Shilpa Medicare Ltd., incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 3384.41 Crore) operating in Pharmaceuticals sector.

Shilpa Medicare Ltd. key Products/Revenue Segments include Bulk Drugs (Intermediates), Formulations, Other Operating Revenue, Traded Goods, Power, Export Incentives for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 269.26 Crore, down -22.20 % from last quarter Total Income of Rs 346.09 Crore and up 12.50 % from last year same quarter Total Income of Rs 239.35 Crore. Company reported net profit after tax of Rs 3.08 Crore in latest quarter.

Investment Rationale
The brokerage believes performance would remain steady going forward, with the USFDA resolution remaining key to faster growth. Maintain REDUCE with a target price of Rs346/share based on 24x FY24E earnings. Key upside risks: Early resolution of the import alert, high-value launches in formulations, and quick success in biosimilars.

Promoter/FII Holdings
Promoters held 50.01 per cent stake in the company as of 30-Jun-2022, while FIIs owned 14.41 per cent, DIIs 1.99 per cent.