Morepen Laboratories Limited (MOREPENLAB) AI Stock Analysis

• Market Cap: ₹19.49B
• Dividend Yield: 0.49%
• Average Volume (3M): 88.30K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 2.13
• Revenue Growth: -0.29%
• EPS Growth: -29.04%
• Country: US
• Employees: 2,152
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.75
• Shares Outstanding: 547,953,700
• 10 Day Avg. Volume: 126,704
• 30 Day Avg. Volume: 88,304
• PEG Ratio: 1.32
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 1.45
• P/FCF Ratio: -28.80
• 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: 57 Neutral
• Price Target: ₹36.00 ▼(-14.27% Downside)

The overall stock score for Morepen Laboratories Limited is primarily influenced by its strong financial performance, despite challenges in profitability margins and cash flow management. Technical analysis indicates bearish momentum, which negatively impacts the score. The valuation suggests moderate pricing, but the low dividend yield limits income potential. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Low leverage and strong capital structure

Very low leverage and a high equity ratio provide durable financial flexibility. With debt-to-equity at 0.09 and a 10.2% ROE, the company is well-positioned to fund R&D, capex, or acquisitions without heavy refinancing risk, supporting resilience through industry cycles.

Diversified business model across APIs, formulations, diagnostics

Multiple revenue streams (finished drugs, APIs, diagnostics, herbal supplements) and global API supply reduce concentration risk. Durable product and channel diversification supports revenue stability and enables cross-selling and scale advantages across domestic and export markets.

Healthy gross and operating margins

Robust gross (34.4%) and EBIT/EBITDA margins indicate structural operational efficiency and pricing power in manufacturing and formulations. These margins support long-term cash generation potential and allow reinvestment into R&D and capacity even if net margins fluctuate.

Negative Factors

Negative free cash flow

Persistent negative free cash flow undermines the company's ability to self-fund growth, pay dividends, or buffer shocks. Even with operating cash generation, negative FCF forces reliance on external financing or asset sales, raising medium-term liquidity and execution risk.

Declining net profit margin

A drop in net margin to 6.5% signals compressing bottom-line profitability versus gross and operating strength. If persistent, margin erosion can limit retained earnings, constrain R&D/capex funding, and reduce returns to shareholders absent sustained cost or pricing actions.

Significant EPS contraction

A nearly 30% decline in EPS reflects material earnings pressure that can stem from margin decline, nonrecurring items, or higher costs. Sustained EPS weakness hampers reinvestment capacity, debt servicing headroom, and investor confidence unless operational trends are reversed.

Morepen Laboratories Limited Business Overview & Revenue Model

Company Description

Morepen Laboratories Limited develops, manufactures, markets, and sells active pharmaceutical ingredients (APIs), branded and generic formulations, and home health products in India. The company offers APIs for anti-histaminic, anti-asthmatic, anti-hypercholesterolemic, anti-hypertensive, and anti-diabetic drugs; point of care and medical devices; and home diagnostic products, such as air purifiers, thermometers, stethoscopes, blood pressure monitors, pulse-oximeters, nebulizers, glucometers, strips, sanitizers, disinfectant solutions, masks and gloves, and others. It also provides Burnol, a burn cream; Lemolate for cough and cold; and Fiber-X, a sat isabgol; and formulations for gastro, antibiotics, vitamins, nutritional, and anti-diabetics, as well as cardiac. In addition, the company is involved in the product contract manufacturing and brand sharing businesses; and provision of over-the-counter products under the Dr. Morepen brand. It exports its products to approximately 75 countries. Morepen Laboratories Limited was incorporated in 1984 and is based in New Delhi, India.

How the Company Makes Money

Morepen Laboratories generates revenue through multiple streams, including the sale of finished pharmaceutical formulations, active pharmaceutical ingredients, and diagnostic products. The company has established a strong presence in the global market, supplying APIs to various pharmaceutical companies and leveraging its manufacturing capabilities to produce cost-effective and innovative healthcare solutions. Additionally, Morepen engages in partnerships with other pharmaceutical firms and healthcare providers to expand its product offerings and distribution networks. The company's revenue is also bolstered by its investment in research and development, leading to patents and proprietary products that enhance its market competitiveness.

Morepen Laboratories Limited Financial Statement Overview

Summary

Morepen Laboratories Limited exhibits strong revenue growth and a solid financial structure, with a low debt profile and effective equity utilization. However, profitability margins have shown a decline, and cash flow management poses challenges, with negative free cash flow highlighting liquidity risks. Continued focus on operational efficiency and cash flow improvement is essential for sustaining its financial health.

Income Statement

The company has shown a consistent revenue growth over the years with a 7.5% increase from 2024 to 2025. The gross profit margin remains healthy at 34.4% for 2025, although the net profit margin has decreased to 6.5% compared to the previous year. The EBIT and EBITDA margins indicate a robust operational efficiency at 17.3% and 10.5% respectively for 2025. However, the drop in profitability margins signifies potential operational challenges.

Balance Sheet

The balance sheet reflects strong financial stability with a debt-to-equity ratio of 0.09 in 2025, indicating low leverage. Return on equity (ROE) stands at 10.2%, suggesting efficient utilization of equity. The equity ratio of 65.0% points to a sound capital structure. Overall, the company maintains a low-risk financial position with ample equity backing.

Cash Flow

The company faces challenges with cash flow management, as evidenced by a negative free cash flow in 2025, despite experiencing a significant increase in operating cash flow. The free cash flow to net income ratio is negative, indicating potential liquidity concerns. However, the operating cash flow to net income ratio of 0.27 suggests some degree of cash generation capability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.86B	18.30B	17.02B	14.18B	15.42B	11.75B
Gross Profit	6.35B	6.30B	6.18B	2.19B	4.81B	3.89B
EBITDA	1.57B	1.92B	1.73B	856.66M	1.57B	1.30B
Net Income	926.01M	1.18B	961.60M	386.75M	1.02B	970.86M
Balance Sheet
Total Assets	0.00	17.78B	12.93B	11.10B	10.70B	8.58B
Cash, Cash Equivalents and Short-Term Investments	1.27B	1.27B	169.45M	216.66M	158.03M	413.87M
Total Debt	0.00	1.05B	289.99M	251.64M	1.33B	1.37B
Total Liabilities	-11.87B	5.91B	4.46B	3.58B	4.92B	4.34B
Stockholders Equity	11.87B	11.56B	8.47B	7.53B	5.79B	4.25B
Cash Flow
Free Cash Flow	0.00	-919.76M	-79.61M	-1.37B	-1.25B	104.27M
Operating Cash Flow	0.00	320.57M	733.75M	-911.71M	-577.58M	508.26M
Investing Cash Flow	0.00	-3.22B	-833.00M	-465.09M	-316.79M	-703.51M
Financing Cash Flow	0.00	3.00B	52.05M	1.44B	663.34M	472.73M

Morepen Laboratories Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MOREPENLAB, the sentiment is Negative. The current price of 41.99 is above the 20-day moving average (MA) of 38.84, above the 50-day MA of 41.14, and below the 200-day MA of 51.96, indicating a bearish trend. The MACD of -1.84 indicates Positive momentum. The RSI at 24.57 is Positive, neither overbought nor oversold. The STOCH value of 10.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MOREPENLAB.

Morepen Laboratories Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPGLIFE	76 Outperform	₹36.49B	16.94	―	0.85%	―	―
MOREPENLAB	57 Neutral	₹19.49B	19.76	―	0.49%	-0.29%	-29.04%
GUFICBIO	57 Neutral	₹32.38B	56.88	―	0.03%	7.78%	-34.68%
UNICHEMLAB	54 Neutral	₹26.65B	29.63	―	―	25.42%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	51 Neutral	₹22.58B	-308.12	―	―	9.78%	50.78%

Morepen Laboratories Limited Corporate Events

Morepen Laboratories Reports No Share Transfer Activity in November 2025

Morepen Laboratories Limited reported to the stock exchanges about the status of transfer requests for physical shares re-lodged under a special window for November 2025. The report, in compliance with a SEBI circular, indicated that no requests were received, processed, approved, or rejected during the month, suggesting a stable situation with no immediate impact on the company’s operations or stakeholder interests.

Morepen Laboratories Releases Financial Results for September 2025

Morepen Laboratories Limited has announced the publication of its unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2025. These results were approved by the Board of Directors on November 14, 2025, and have been published in the Financial Express and Jansatta newspapers. The announcement reflects the company’s commitment to transparency and regulatory compliance, potentially impacting its market perception and investor confidence.