Check Before You Invest : Shelter Pharma Ltd

Snapshot

Q.1 Which industry/sub-sector does Shelter Pharma Ltd belong to?

Shelter Pharma Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Shelter Pharma Ltd a good quality company?

Shelter Pharma Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Shelter Pharma Ltd undervalued or overvalued?

Shelter Pharma Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Shelter Pharma Ltd a good buy now?

Shelter Pharma Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Shelter Pharma Ltd?

Shelter Pharma Ltd revenue growth is 26.6% for FY-2025, which is above its 5-year CAGR of 11%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Shelter Pharma Ltd?

Shelter Pharma Ltd Return on capital employed is 25.07% for FY-2025, which is below its 5-year historical median of 33.62%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Shelter Pharma Ltd?

Shelter Pharma Ltd Return on Asset is 16.14%, which is in line with its 5-year historical median of 16.14%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Shelter Pharma Ltd?

Shelter Pharma Ltd Return on equity is 18.88% for FY-2025, which is below its 5-year historical median of 25.58%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Shelter Pharma Ltd?

Shelter Pharma Ltd Cash conversion cycle is 139 days, above its 5-year historical median of 113 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.13	2.11
ROE	18.88	25.58
ROCE	25.07	33.62
Cash Conversion Cycle	139 days	113 days

Q.6 Gross Profit margin of Shelter Pharma Ltd?

Shelter Pharma Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.6% for FY-2025, which is in line with its 5-year median of 19.6%, indicating stable margins.

Q.7 Operating Profit Margin of Shelter Pharma Ltd?

Shelter Pharma Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.87% for FY-2025, which is in line with its 5-year median of 19.87% indicating stable margins.

Q.8 Net Profit Margin of Shelter Pharma Ltd?

Shelter Pharma Ltd Net Profit Margin is 14.29% for FY-2025, is in line with with its 5-year median of 14.29%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	19.6	19.6
Operating Profit Margin	19.87	19.87
Net Profit Margin	14.29	14.29

Q.9 Debt to Equity ratio of Shelter Pharma Ltd?

Shelter Pharma Ltd Debt-to-Equity ratio is 0.03, which is lower with the industry average of 0.27, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shelter Pharma Ltd?

Shelter Pharma Ltd Debt to cash flow from operations is 0.19, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shelter Pharma Ltd?

Promoters hold 44.99% of the Shelter Pharma Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shelter Pharma Ltd vs industry peers?

Shelter Pharma Ltd revenue CAGR is 11.00%, compared to the industry median CAGR of 8.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	26.6	8.3
Gross Profit Growth	16.7	14.7
Operating Profit Growth	14.5	11.4
Net Profit Growth	16.8	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.13	0.81
ROE	18.88	9.49
ROCE	25.07	11.91
Cash Conversion Cycle (days)	139.18	85

Valuation & price assessment

Q.1 Stock return of Shelter Pharma Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -21.06% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-21.1%

Q.3 Valuation ratios of Shelter Pharma Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	6.98	8.99	31.09
Price to Book	0.85	1.72	2.85
Price to Sales	1	1.36	2.79
EV to EBITDA	4.77	6.36	15.87

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