Morepen Laboratories Limited (MOREPENLAB) AI Stock Analysis

• Market Cap: ₹22.84B
• Dividend Yield: 0.49%
• Average Volume (3M): 88.30K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.94
• Revenue Growth: -0.29%
• EPS Growth: -29.04%
• Country: IN
• Employees: 2,152
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.50
• 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: ₹40.00 ▼(-4.74% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

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 / strong balance sheet

A debt-to-equity ratio of 0.09 and 65% equity ratio signal a conservatively financed balance sheet. This durable financial strength provides flexibility to fund capex, R&D or acquisitions without high interest burden, and improves resilience to industry cyclicality.

Consistent revenue growth & healthy gross margin

Sustained top-line growth combined with a strong gross margin (34.4%) indicates the company retains pricing and cost advantages in production. This durable margin buffer supports reinvestment, covers operating leverage, and underpins longer-term EBITDA generation.

Diversified pharma model: APIs and formulations

Operating across APIs and finished formulations creates diversified revenue streams and multiple routes to market (branded, contract, exports). Manufacturing scale and product mix reduce reliance on a single segment, supporting steadier revenues and commercial resilience.

Negative Factors

Negative free cash flow

Despite higher operating cash flow, negative free cash flow in 2025 means cash available after capex is constrained. Persistently negative FCF limits ability to self-fund growth, dividends or debt reduction and may force external financing or cutbacks in investment.

Compression in net profit margins

A drop to a 6.5% net margin, despite solid gross margins, suggests rising SG&A, R&D, or other operating pressures. If persistent, margin compression will reduce retained earnings and ROE, constraining long-term reinvestment and shareholder returns.

Declining EPS growth

A steep year-over-year EPS decline (~24%) signals earnings volatility or one-off impacts and weakens the company’s ability to compound shareholder value. Continued EPS contraction would hinder capital allocation, reduce buffer for downturns, and impair long-term strategic initiatives.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 40.50, above the 50-day MA of 39.41, and below the 200-day MA of 49.86, indicating a neutral trend. The MACD of 1.22 indicates Negative momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 42.78 is Neutral, 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	₹29.94B	43.39	―	0.85%	―	―
UNICHEMLAB	61 Neutral	₹22.64B	2.94	―	―	25.42%	―
MOREPENLAB	57 Neutral	₹22.84B	20.54	―	0.49%	-0.29%	-29.04%
GUFICBIO	57 Neutral	₹27.96B	67.80	―	0.03%	7.78%	-34.68%
MEDIASSIST	56 Neutral	₹26.49B	205.09	―	0.92%	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	51 Neutral	₹20.07B	144.78	―	―	9.78%	50.78%

Morepen Laboratories Limited Corporate Events

Morepen Labs Reports Minimal Activity in SEBI Special Window for Physical Share Transfers

Morepen Laboratories has reported to the stock exchanges on the status of shareholder requests for re-lodgement of physical share transfer requests under a special six-month window mandated by the Securities and Exchange Board of India (SEBI). For the period from 1 January 2026 to 6 January 2026, the company’s registrar and share transfer agent, MAS Services Limited, confirmed that one request for re-lodgement of physical share transfer was received and processed, with the request being rejected and no approvals granted, indicating minimal activity and a limited operational impact from the SEBI special window during this initial period.

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.