Shilpa Medicare Ltd Shares Skyrocket with FDA Approval of Apremilast Tablets

Shares of Shilpa Medicare Ltd have surged around 12 percent today with an intra-day high of Rs 260.70. Currently, the stock is trading for Rs 258, which is up by 10.7 percent from the previous closing price of Rs 233.35. As per the latest news, the company has provided returns of around 11.5 percent to its stakeholders last week. Shilpa Medicare Ltd, a speciality and generic drug manufacturer, has announced in a recent filing with the exchange that it has received the final approval for its ANDA, Apremilast Tablets from the U.S. Food and Drug Administration (USFDA). These tablets are primarily used for treating adult patients with active psoriatic arthritis.

Shilpa Medicare Ltd offers a wide range of products, including over 44 oncology and non-oncology APIs, using nano and micro-technology in drug identification and formulation. The company operates in two segments: Pharmaceutical products and services and Power sales. The group derives revenue from both domestic and foreign sources.

Shilpa Medicare Ltd Financial Performance: A Quick Glance

Looking at the financials of the company as per the stock market update, it can be observed that the revenues have marginally decreased from Rs 262.91 crores in Q2 to Rs 262.5 crores in Q3. The company has had net losses in the past two quarters, but it has comparatively become less negative by narrowing down its losses from Rs 16.38 crores in Q2 to 6.95 crores in Q3.

The profitability ratios of the company have also decreased on a YoY basis with ROE figures moving from 10.41 percent in FY20-21 to 3.67 percent in FY21-22. ROCE figures shifted down from 10.73 percent in FY20-21 to 5.94 percent in FY21-22. However, the debt-to-equity ratio of the company has showcased a positive scenario with the numbers reducing from 0.57 in FY20-21 to 0.37 in FY21-22.

The market trend shows that in the quarter ending December 2022, it remains unchanged that the promoters hold a stake of 50.01 percent in the company, while the foreign institutional investors (FIIs) have shown an increase in their stake from 10.98 percent in Q2 to 11.84 percent in Q3.