Morepen Laboratories Limited (MOREPENLAB) AI Stock Analysis

• Market Cap: ₹26.37B
• Dividend Yield: 0.42%
• Average Volume (3M): 321.37K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 1.97
• Revenue Growth: 2.12%
• EPS Growth: -25.99%
• Country: IN
• Employees: 2,152
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.20
• Shares Outstanding: 547,953,700
• 10 Day Avg. Volume: 145,071
• 30 Day Avg. Volume: 321,365
• 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: ₹58.00
• Price Target Upside: 20.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ₹58.00 ▲(20.53% Upside)

The overall stock score reflects strong financial stability and revenue growth, offset by declining profitability margins and liquidity concerns. Technical indicators suggest a neutral to slightly bullish trend, while valuation metrics indicate the stock may be overvalued. Improvements in cash flow management are crucial for enhancing financial health.

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 shows strong revenue growth and a solid financial structure with low debt and effective equity utilization. However, declining profitability margins and negative free cash flow indicate potential liquidity risks, necessitating improvements in cash flow management.

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: 48.12
• 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:MOREPENLAB, the sentiment is Negative. The current price of 48.12 is below the 20-day moving average (MA) of 49.41, below the 50-day MA of 49.57, and below the 200-day MA of 56.96, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 16.92 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	67 Neutral	₹26.37B	28.24	―	0.42%	2.12%	-25.99%
UNICHEMLAB	58 Neutral	₹32.71B	25.00	―	―	22.04%	―
GUFICBIO	57 Neutral	₹35.26B	57.00	―	0.03%	2.37%	-30.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PANACEABIO	45 Neutral	₹27.27B	237.58	―	―	11.80%	―