Morepen Laboratories Limited (MOREPENLAB) AI Stock Analysis

• Market Cap: ₹25.58B
• Dividend Yield: N/A
• Average Volume (3M): 357.43K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.79
• Revenue Growth: 2.12%
• EPS Growth: -25.99%
• Country: IN
• Employees: 2,152
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.20
• Shares Outstanding: 547,953,700
• 10 Day Avg. Volume: 466,327
• 30 Day Avg. Volume: 357,431
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹67.00
• Price Target Upside: 43.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ₹67.00 ▲(43.50% Upside)

The overall score is primarily influenced by strong financial performance, characterized by solid revenue growth and a robust balance sheet. However, the decline in profitability margins and cash flow challenges are significant concerns. Technical analysis indicates neutral momentum, and the valuation suggests the stock could be overvalued, adding to the cautious outlook.

Morepen Laboratories Limited Business Overview & Revenue Model

Company Description

Morepen Laboratories Limited (MOREPENLAB) is an Indian pharmaceutical company primarily engaged in the manufacturing and marketing of active pharmaceutical ingredients (APIs), home diagnostic devices, and over-the-counter (OTC) products. The company operates in the health and wellness sectors, providing a wide range of products including anti-allergy and anti-asthma APIs, blood glucose monitors, thermometers, and other health monitoring devices. Morepen Laboratories is committed to delivering quality healthcare solutions and enhancing the well-being of its consumers globally.

How the Company Makes Money

Morepen Laboratories Limited generates revenue through multiple streams. The company's primary revenue source is the sale of active pharmaceutical ingredients (APIs) to pharmaceutical companies worldwide. This includes APIs for various therapeutic categories, such as allergy, respiratory, and cardiovascular. Another significant revenue stream is its home diagnostics segment, where the company sells products like blood glucose monitors, blood pressure monitors, and thermometers to consumers. Morepen also earns from its over-the-counter (OTC) products, which include health supplements and wellness products sold through retail and online channels. Additionally, the company benefits from strategic partnerships and collaborations with global pharmaceutical companies, allowing them to expand their market reach and product offerings.

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	Mar 2025	Mar 2023	Mar 2024	Mar 2021	Mar 2022
Income Statement
Total Revenue	18.30B	14.18B	17.02B	11.75B	15.42B
Gross Profit	6.30B	4.62B	6.18B	3.89B	4.81B
EBITDA	1.92B	856.66M	1.73B	1.28B	1.57B
Net Income	1.18B	386.75M	961.60M	970.86M	1.02B
Balance Sheet
Total Assets	17.78B	11.10B	12.93B	8.58B	10.70B
Cash, Cash Equivalents and Short-Term Investments	1.27B	618.18M	169.45M	413.87M	158.03M
Total Debt	1.05B	251.64M	289.99M	170.46M	185.69M
Total Liabilities	5.91B	3.58B	4.46B	4.34B	4.92B
Stockholders Equity	11.56B	7.53B	8.47B	4.25B	5.79B
Cash Flow
Free Cash Flow	-919.76M	-1.37B	-79.61M	104.27M	-1.25B
Operating Cash Flow	320.57M	-911.71M	733.75M	508.26M	-577.58M
Investing Cash Flow	-3.22B	-465.09M	-833.00M	-703.51M	-316.79M
Financing Cash Flow	3.00B	1.44B	52.05M	472.73M	638.52M

Morepen Laboratories Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.69
• 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 46.69 is below the 20-day moving average (MA) of 56.56, below the 50-day MA of 60.64, and below the 200-day MA of 63.97, indicating a bearish trend. The MACD of -3.95 indicates Positive momentum. The RSI at 19.13 is Positive, neither overbought nor oversold. The STOCH value of 11.43 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
MOREPENLAB	65 Neutral	₹25.58B	27.74		―	2.12%	-25.99%
Sector *	60 Neutral	HK$18.14B	5.30	-4.00%	3.33%	10.16%	-17.39%
GUFICBIO	59 Neutral	₹35.51B	50.95		0.03%	2.37%	-30.78%
UNICHEMLAB	58 Neutral	₹34.11B	26.07		―	22.04%	―
PANACEABIO	44 Neutral	₹26.38B	―		―	-0.01%	-616.18%