Brooks Laboratories Limited (BROOKS) AI Stock Analysis

• Market Cap: ₹1.84B
• Dividend Yield: N/A
• Average Volume (3M): 2.20K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.25
• 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: 45 Neutral
• Price Target: ₹61.00 ▼(-50.67% Downside)
• Action: Reiterated Date: 12/31/25
• Date: Action: Reiterated 12/31/25

The score is primarily held back by weak financial performance (ongoing losses and negative operating/free cash flow) and a strong bearish technical trend (price far below key moving averages with negative MACD). Valuation is only moderately supportive with a mid-range P/E and no dividend yield.

Positive Factors

Improving leverage (debt reduction)

Declining debt and an improved debt-to-equity ratio reduce solvency risk and interest burden, giving the firm greater financial flexibility. Over months this supports capacity to fund R&D, capex or absorb shocks and improves access to favorable financing when needed.

Improved operating margins in 2025

Reported improvement in EBIT/EBITDA margins in 2025 signals better operating efficiency and cost control. If sustained, stronger core margins can convert revenue into cash more reliably, support deleveraging and fund strategic initiatives, enhancing medium-term resilience.

Revenue recovery in 2025

The reversal from a revenue decline to recovery in 2025 shows the company can regain demand and rebuild top-line momentum. Sustained revenue growth helps spread fixed costs, supports margin improvement, and underpins longer-term cash generation if consistency is maintained.

Negative Factors

Persistent negative operating and free cash flow

Multi-year negative operating cash flow and weak free cash flow create ongoing liquidity pressure. Over the medium term this restricts internal funding for operations and investment, may force external financing, and increases vulnerability to interest and covenant risk.

Ongoing net losses and negative ROE

Sustained net losses producing negative ROE indicate failure to generate shareholder returns and erode equity over time. This limits retained earnings, constrains reinvestment capacity, and can raise the cost of capital, hampering strategic initiatives and recovery prospects.

Volatile gross margins and inconsistent revenue

High gross-margin volatility and inconsistent revenue history point to unstable pricing, input-cost exposure or product-mix swings. This makes forecasting and durable margin recovery uncertain, meaning recent margin gains may not persist without structural cost or portfolio improvements.

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

Brooks Laboratories Limited generates revenue primarily through its laboratory services, which include analytical testing and consulting for pharmaceutical and biotech companies. The company operates on a fee-for-service model, charging clients based on the specific services rendered, such as stability testing or method validation. Key revenue streams include long-term contracts with pharmaceutical companies for ongoing testing services, one-time project fees for specific studies, and partnerships with research institutions for collaborative projects. Additionally, BROOKS may benefit from strategic alliances with other companies in the industry, enabling access to new markets and enhancing its service offerings, ultimately contributing to its overall earnings.

Brooks Laboratories Limited Financial Statement Overview

Summary

Income statement and cash flow are weak: revenue and gross margin volatility, negative net margins, and multi-year negative operating cash flow/free cash flow. Some positives include improved EBIT/EBITDA margins in 2025 and better leverage management as debt has declined, but overall profitability and cash generation remain key risks.

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	1.08B	825.57M	794.86M	624.80M	911.85M	770.68M
Gross Profit	343.34M	139.22M	225.13M	126.02M	-79.11M	218.28M
EBITDA	59.11M	58.22M	41.73M	-291.68M	-134.50M	12.52M
Net Income	-4.08M	-99.67M	-195.92M	-209.00M	-193.13M	-193.75M
Balance Sheet
Total Assets	0.00	1.24B	904.45M	1.10B	1.96B	1.62B
Cash, Cash Equivalents and Short-Term Investments	12.48M	12.48M	1.25M	232.00K	26.05M	8.84M
Total Debt	0.00	75.83M	56.42M	65.12M	252.59M	313.85M
Total Liabilities	-981.04M	255.90M	248.60M	356.44M	615.91M	829.29M
Stockholders Equity	981.04M	981.04M	655.85M	739.53M	874.90M	791.48M
Cash Flow
Free Cash Flow	0.00	-971.00K	-101.20M	-149.58M	-650.53M	-11.55M
Operating Cash Flow	0.00	17.62M	-96.81M	-144.91M	-374.41M	44.59M
Investing Cash Flow	0.00	-460.41M	1.82M	4.95M	-249.09M	-51.30M
Financing Cash Flow	0.00	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: Positive

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 70.55, above the 50-day MA of 72.40, and above the 200-day MA of 117.26, indicating a bearish trend. The MACD of -1.66 indicates Positive momentum. The RSI at 35.04 is Neutral, neither overbought nor oversold. The STOCH value of 14.49 is Positive, 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	₹3.59B	36.55	―	―	21.55%	47.80%
ZIMLAB	63 Neutral	₹3.34B	19.99	―	―	-5.82%	-59.22%
MEDICAMEQ	57 Neutral	₹4.03B	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	₹3.92B	6.87	―	0.66%	-13.51%	-122.00%
NECLIFE	46 Neutral	₹2.69B	7.63	―	―	-30.27%	-3470.06%
BROOKS	45 Neutral	₹1.84B	10.71	―	―	18.67%	―