ICICI Securities: Shilpa Medicare Delivers Strong Q1 Performance; Margin Surprises Positively

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Shilpa Medicare Ltd. reported Q1 FY21 results better than our estimates with margin beat of 600 basis points.Revenue grew 38.4% YoY to Rs 2.2 billion (our estimate Rs 2.3 billion) and Ebitda margin improved 1,160/880 basis points YoY/QoQ to 29.5% (our estimate 23.5%) driven by higher gross margin and controlled general and administrative expenses.Both active pharmaceutical ingredients and formulations performed well. The management’s focus is clearly on building high value businesses as it focuses on strengthening the oncology pipeline for regulated markets and foray into biosimilars, transdermals, etc.Further, formulations revenue of approximately Rs 2 billion in FY20 from just six products indicates revenue per product of approximately $6 million, better than most peers. We believe any success in biosimilars or transdermals may provide meaningful upside..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Shilpa Medicare Delivers Strong Q1 Performance; Margin Surprises Positively

ICICI Securities: Shilpa Medicare Delivers Strong Q1 Performance; Margin Surprises Positively

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