Brooks Laboratories Limited (BROOKS) AI Stock Analysis

• Market Cap: ₹1.71B
• Dividend Yield: N/A
• Average Volume (3M): 2.20K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.27
• Revenue Growth: 18.67%
• EPS Growth: N/A
• Country: IN
• Employees: 293
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.87
• Shares Outstanding: 29,457,249
• 10 Day Avg. Volume: 1,280
• 30 Day Avg. Volume: 2,199
• PEG Ratio: 0.59
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 4.06
• P/FCF Ratio: -3.45K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹62.00 ▼(-49.86% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is held back primarily by weak financial performance—ongoing net losses and sustained negative operating/free cash flow—despite some margin and debt improvements. Technicals add further pressure with a clear downtrend across key moving averages and negative MACD. Valuation is a partial offset with a modest P/E, but it is not enough to overcome profitability and cash-flow concerns.

Positive Factors

Improving leverage

A declining total debt and improved debt-to-equity ratio indicate materially better leverage management. Over the next 2-6 months this reduces interest burden and refinancing pressure, increases balance-sheet flexibility for operations or targeted investment, and lowers bankruptcy risk.

EBIT/EBITDA margin improvement

Improved EBIT/EBITDA margins point to stronger operational efficiency or pricing power. Sustained margin recovery supports cash generation potential and makes a path to profitability more credible, enabling reinvestment or deleveraging if maintained over successive quarters.

Revenue recovery trend

A 15.44% revenue growth and a 2025 recovery after prior declines suggest demand or market-share stabilization. If this trend continues, it supports scale economics, helps absorb fixed costs, and provides the top-line base needed for sustained margin and cash-flow improvements.

Negative Factors

Persistent net losses

Ongoing net losses and negative ROE indicate the company is not generating returns on shareholder capital. Over months this erodes equity, limits retained-earnings-funded growth, and forces reliance on external financing or asset sales, constraining strategic options.

Multi-year negative operating cash flow

Sustained negative operating cash flow signals chronic inability to convert earnings into cash. This creates liquidity risk, forces dependency on financing, and limits investment capacity; structurally it can prevent funding product development or working-capital needs without new capital.

Volatile revenue and gross margins

Volatility in revenue and gross margins undermines predictability of earnings and cash flow. Over the medium term it complicates planning, weakens pricing power, and suggests exposure to input-cost swings or unstable demand, making sustainable margin improvement harder to rely upon.

Brooks Laboratories Limited Business Overview & Revenue Model

Company Description

Brooks Laboratories Limited manufactures and sells pharmaceuticals on contract basis in India and internationally. It offers carbapenem drugs; tablets; dry syrup; liquid and dry power injections; and eye and ear drop. Brooks Laboratories Limited was incorporated in 2002 and is based in Mumbai, India.

How the Company Makes Money

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Brooks Laboratories Limited Financial Statement Overview

Summary

Income statement trends are weak with volatile revenue and persistently negative net margins despite improved EBIT/EBITDA margins in 2025. Balance sheet leverage has improved as debt declined, but ROE remains negative due to ongoing losses. Cash flow remains a major constraint with multi-year negative operating cash flow and poor free cash flow, albeit with some improvement in 2025.

Income Statement

Brooks Laboratories Limited has shown inconsistent revenue growth, with a noticeable decline in revenue from 2022 to 2023, followed by a recovery in 2025. Gross profit margins have been volatile, indicating instability in cost management. However, the company has managed to improve its EBIT and EBITDA margins in 2025 compared to previous years, although net profit margins remain negative due to persistent net losses.

Balance Sheet

The company's debt-to-equity ratio has improved as total debt decreased over recent years, suggesting better leverage management. The return on equity remains negative due to ongoing net losses, which is a concern. However, the equity ratio is relatively stable, indicating a strong equity position relative to total assets.

Cash Flow

Cash flow from operations has been negative for several years, but there has been some improvement in 2025. The company has struggled with free cash flow, indicating potential liquidity issues. The operating cash flow to net income ratio remains unfavorable due to sustained losses, although free cash flow has shown slight growth from a very low base.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.11B	825.57M	794.86M	624.80M	911.85M	770.68M
Gross Profit	364.78M	139.22M	225.13M	126.02M	-79.11M	218.28M
EBITDA	177.76M	58.22M	41.73M	-291.68M	-134.50M	12.52M
Net Income	115.32M	-99.67M	-195.92M	-209.00M	-193.13M	-193.75M
Balance Sheet
Total Assets	1.40B	1.24B	904.45M	1.10B	1.96B	1.62B
Cash, Cash Equivalents and Short-Term Investments	18.03M	12.48M	1.25M	232.00K	26.05M	8.84M
Total Debt	78.33M	75.83M	56.42M	65.12M	252.59M	313.85M
Total Liabilities	242.82M	255.90M	248.60M	356.44M	615.91M	829.29M
Stockholders Equity	1.16B	981.04M	655.85M	739.53M	874.90M	791.48M
Cash Flow
Free Cash Flow	-3.84M	-971.00K	-101.20M	-149.58M	-650.53M	-11.55M
Operating Cash Flow	3.19M	17.62M	-96.81M	-144.91M	-374.41M	44.59M
Investing Cash Flow	-1.03M	-460.41M	1.82M	4.95M	-249.09M	-51.30M
Financing Cash Flow	-2.30M	441.96M	96.01M	114.14M	640.71M	11.59M

Brooks Laboratories Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 123.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BROOKS, the sentiment is Negative. The current price of 123.65 is above the 20-day moving average (MA) of 67.71, above the 50-day MA of 68.77, and above the 200-day MA of 114.60, indicating a bearish trend. The MACD of -3.16 indicates Positive momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 29.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BROOKS.

Brooks Laboratories Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEDICO	71 Outperform	₹3.29B	36.55	―	―	21.55%	47.80%
ZIMLAB	63 Neutral	₹3.25B	19.99	―	―	-5.82%	-59.22%
MEDICAMEQ	55 Neutral	₹3.72B	56.53	―	0.26%	-9.16%	49.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ALBERTDAVD	51 Neutral	₹3.88B	6.87	―	0.66%	-13.51%	-122.00%
BROOKS	46 Neutral	₹1.71B	10.71	―	―	18.67%	―
NECLIFE	46 Neutral	₹2.50B	7.63	―	―	-30.27%	-3470.06%