India, Oct. 19 -- Shilpa Medicare is transforming its business model from active pharmaceutical ingredients (APIs) to specialty formulations, contract development and manufacturing (CDMO) and biologics. The significance lies in the fact that investors are willing to pay a premium for the former, based on future earnings of companies that are yet to fully realise their potential.

With a market capitalization of Rs. 17,913.34 crore, the shares of Shilpa Medicare Ltd were trading at Rs. 915 per share, down 2.41 percent from its previous closing price of Rs. 937.60 apiece. The stock trades at a P/E of 73.49x on a consolidated basis. Revenue Growth Is Accelerating, but Profitability Needs a Closer Look

Shilpa Medicare saw its consolidated t...