Shilpa Medicare -Racing away on the Oncology API highway!


(Sandeep Patel) #568

My old school type Gross Margin (GM) calculation follows. It says GM is down by 205bps to 50.77% in Q3 FY18 from 52.82% in Q3Fy17.
Capture


(naishadh) #569

Any clarity on the 483 resolutions?


(khs) #570

Pledging of shares by promoters


(naishadh) #571

What’s going wrong here? Any insight into why Bhutada is pledging his personal shares for a personal loan?


(Vijayk) #572

Even at this price Shilpa medi is pretty expensive vs the sector valuations.


(MONK88888) #573

VAI Jadcherla from USFDA VAI: Voluntary Action Indicated. Objectionable conditions or practices were found, but the agency is not prepared to take or recommend any administrative or regulatory action.


(MONK88888) #574

Earlier status of formulations is maintained-no wonder the share rose from around 415 to around 460 over the last couple of weeks


(Sandeep Patel) #575

Thanks for the update @MONK88888.

Shilpa Medicare has received Establishment Inspection Report (EIR) from the USFDA for its formulation facility located at Jadcherla, Telangana for the inspection carried out in November 2017.

Relief. Phew…

Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/78c40cfc-6f0f-4836-9a55-444104447bce.pdf


(Rajesh) #576

Can you elaborate ‘VAI’ to help me understand.


(abrahamappu) #577

(naishadh) #578

Any insights on Raichur API facility expected resolution? Is the Jadcherla FDA clearance useless without the API facility getting approved?


(MONK88888) #579

If a 10 point Jadcherla is resolved as VAI , I feel that API (3 points to resolve) should not be an issue. Since API inspection happened after Jadcherla , their CAPA would have been submitted thereafter. My guess is we should see a possible VAI in a month’s time. USFDA for JAdcherla was required to ensure that ANDA’s filed with respect to formulations get approved . Lack of EIR for API plants should not impact Jadcherla .


(Rajesh) #580

Shilpa sold it’s stake in loss making joint venture Raichem Medicare to other partner i.e. ICE.


(Sarabjeet Singh) #582

Results are yet to be announced. Its on 28th May


(Sarabjeet Singh) #583

results are out

Revenue is up YoY however profits are down YoY. Pressure on margins.


(Dhruv Saraf) #584

I’ve been monitoring some API manufacturers off late and their operating history over the last 6-7 years…What struck me when I saw the numbers of both Shilpa and Neuland Labs is that their gross margins have increased significantly since 2012-13 but none of the incremental contribution has reflected on EBITDA Margins…

The windfall generated has been re-invested into the business in the form of higher employee expenses. Now one way of looking at this would be that the companies are upping their compliance game and are hence hiring top notch professionals. Or the other thing would be that they simply lack the power to pass on these costs to the end customer.

Can somebody explain as to why this business would need so much investment in man power?

Attaching Neuland Labs as well for reference.


(ca pawan) #585

Shivalik Rasayan is also entering in oncology. They have hired akshya chaturvedi from Shilpa and making state of the art manufacturing facility at dahej with capex of more than 100 cr.


(Vijayk) #586

Stock continues to look very expensive vs other companies in pharma sector.