Add Shilpa Medicare, target price Rs 580: ICICI Securities

ICICI Securities has given an add rating to Shilpa Medicare with a target price of Rs 580. The share price moved down by 0.07 per cent from its previous close of Rs 497.75. The stock’s last traded price is Rs 497.40.

Shilpa Medicare Ltd., incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 4044.14 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 222.86 Crore, up 1.31 % from last quarter Sales of Rs 219.99 Crore and up 38.43 % from last year same quarter Sales of Rs 160.99 Crore. The Company reported net profit after tax of Rs 86.60 Crore in latest quarter.

Investment Rationale
The brokergae believes any success in biosimilars or transdermals may provide a meaningful upside. It maintains ADD with a revised target price of Rs 580 (earlier: Rs638).

Promoter/FII Holdings
Promoters held 53.8 per cent stake in the company as of June 30, 2020, while FIIs held 26.5 per cent, DIIs 13.52 per cent and public and others 0.8 per cent.