Shilpa Medicare shares jump 6% as arm secures CEP for Octreotide API

Shilpa Medicare saw its shares soar by 6.3% to ₹917.70 on November 19, after a significant achievement by its subsidiary, Shilpa Pharma Lifesciences Limited. The arm received a Certificate of Suitability (CEP) from the EDQM for the API, Octreotide.

Octreotide, a synthetic peptide developed using advanced solid-phase synthesis, addresses critical medical needs such as acromegaly and symptoms associated with metastatic carcinoid and VIP-secreting tumours. This milestone strengthens Shilpa's growing peptide portfolio, further showcasing its global competitiveness in quality and innovation.

Strong financial growth

The recent achievement aligns with Shilpa Medicare's stellar financial performance for Q2 FY25. Consolidated net profit surged an impressive 1042.68% year-on-year to ₹17.94 crore, while revenue rose 9.85% to ₹343.80 crore. EBITDA climbed 46.54% to ₹91 crore, driving an enhanced EBITDA margin of 26%, up from 20% in Q2 FY24.

Shilpa's strategic focus on cost management is evident, with material costs dropping by 17.98% YoY and employee benefits expenses reduced by 4.2%. These factors bolster its position as a solid choice for those looking to invest in stocks with a robust growth trajectory.

Why investors are excited

Shilpa's strong fundamentals, coupled with consistent achievements in advanced pharmaceuticals, make it a promising avenue for those seeking to invest in stocks. Its expanding portfolio and adherence to international quality standards ensure long-term growth potential, especially for investors prioritising healthcare innovation.

Key takeaways

• Shilpa Medicare shares rose 6.3% to ₹917.70 following the CEP certification for Octreotide by EDQM.
• Consolidated net profit surged over 1000% YoY in Q2 FY25, with revenue up 9.85%.
• Strong cost control and innovation position Shilpa Medicare as a compelling option to invest in stocks in the pharma sector.