Shilpa Medicare Limited (SML') is a dominant player in Oncology (76% of total revenues). After establishing strong foothold in API segment, it leveraged its niche capabilities to forward integrate into formulations FY17 onwards. SML's strength lies in its R&D capabilities (~16% of sales) to move across value chain from APIs to formulations to Biologics, focusing on niche and complex molecules. Over last 5 years SML has been in a capex cycle (spent INR 1700crs+ on Capex and R&D) to augment its capabilities. At the same time earnings were impacted due to the Import Alert on the only USFDA plant. This led to a stretched balance sheet and an unsupportive P&L for SML over last 2 years. As per us, SML's earnings have now bottomed and should move north from here on the back of positive EBITDA contributions from Formulations and Biologics. Recombinant Albumin, large potential molecules and monetization of API business remain high probability optionality for SML. We thus value SML on 15x EV/EBITDA basis for their base business FY24E EBITDA and the valuations of key optionality as articulated in page 16 of the report. We thus arrive at a March-23 base...