Morepen Laboratories Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Morepen Laboratories Ltd trades at ₹57.0, in a confirmed uptrend and 5 weeks into that stage. That is +18.1% against its own 200-day average. It sits at 80% of a 52-week range of ₹34 to ₹63. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 12 straight weeks.

Today the stock is in a confirmed uptrend — week 5 of stage 2, confirmed. At ₹57.0 it trades +18.1% versus its 200-day average and sits at 80% of its 52-week range (₹34–₹63).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +111% while the NIFTY 500 moved +276% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 12 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Morepen Laboratories Ltd trades at 42.0× P/E, at the pricey end of its own range (80th percentile). Its long-run median P/E is 30.2×, measured across 9.9 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 42.0× is at the pricey end of its own range (80th percentile), against a long-run median of 30.2× measured over 9.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved −19.5% against a −1.3% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the −2.7%/yr price move, ~−10.8%/yr came from earnings growth and ~+8.1 pp from the multiple (expanding); over 10y, of the +9.1%/yr price move, ~+13.6%/yr came from earnings growth and ~−4.5 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Morepen Laboratories Ltd reads as deteriorating on its fundamental arc. Deteriorating — revenue, profit and EPS growth are shrinking (revenue growth −0.3% latest against +19.2% at its 12-quarter best), ROCE holding at 10.0%. The read is built from 12 quarters across 4 curves, on full evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

4-Factor Sector Score

33.1/100 — rank 18 of 24 in Pharma - API & CRAMS · 90% evidence confidence

Morepen Laboratories Ltd scores 33.1 out of 100 against the 24 companies it is compared with in Pharma - API & CRAMS, ranking 18. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 8.5 + 5.9 + 9.9 + 8.8 = 33.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Morepen Laboratories Ltd reported ₹485 Cr of revenue in the Mar 26 quarter, +4.1% year on year. That is the 2nd straight quarter of year-on-year growth. Over 10 years it has compounded at 14.1% a year. The last full year, FY26, came in at ₹1,806 Cr. The last four reported quarters add to ₹1,806 Cr.

FY26 revenue came in at ₹1,806 Cr (−0.3% on the year), capping 10 years at 14.1% compound. The latest quarter (Mar 26) printed ₹485 Cr, +4.1% year on year — the 2nd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged −0.4% growth against the decade's 14.1% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −0.3% over the last 4 quarters against +3.3%/yr over the last 8 — rolling over; TTM profit −18.6% vs −0.5%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Morepen Laboratories Ltd's operating margin is 5.0% in the Mar 26 quarter, −4.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 6.0% to 13.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 5.0%, −4.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 6.0%–13.0%.

🚨 Why the margin moved: operating margin went −4.0 pp year on year while gross margin went +6.1 pp — the loss came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Morepen Laboratories Ltd earned ₹16.0 Cr of net profit in the Mar 26 quarter, −20.0% year on year. Full-year FY26 profit was ₹96.0 Cr. The 10-year compound rate is 22.1%. That is 3.3% of the quarter's revenue. The same quarter a year earlier earned ₹20.0 Cr.

Mar 26 profit was ₹16.0 Cr, −20.0% year on year. On the full year, FY26 printed ₹96.0 Cr (−18.6%), and the 10-year compound rate is 22.1%.

🚨 Why profit moved: revenue contributed +4.1% and the margin −4.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit −17.1% vs revenue −0.4%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 44% of Morepen Laboratories Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹33.0 Cr of operating cash against ₹96.0 Cr of profit. After ₹54.0 Cr of capital spending, ₹−21.0 Cr was left as free cash.

FY26: operating cash of ₹33.0 Cr against reported profit of ₹96.0 Cr, leaving free cash of ₹−21.0 Cr after ₹54.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 44% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 44%: the cash cycle stretched 13 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 13 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Morepen Laboratories Ltd's cash conversion cycle runs 53 days in FY26, up from 40 days in FY21. Capital spending ran ₹349 Cr over the last 3 years. At FY26 sales of ₹1,806 Cr each day of that cycle holds about ₹4.9 Cr, so roughly ₹262 Cr sits inside the business at any moment.

FY26: debtors at 67 days, inventory at 88 days — roughly 2.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 53 days, looser than FY21's 40.

The full loop: cash goes out to suppliers and production on day 0; stock waits 88 days to sell; customers pay about 67 days after that; and suppliers themselves are paid at 103 days — netting out to the 53-day cycle.

In money terms: at FY26 sales of ₹1,806 Cr, each day of the cycle holds about ₹4.9 Cr — so the 53-day loop keeps roughly ₹262 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹349 Cr over the last 3 fiscal years against ₹98.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹22.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Morepen Laboratories Ltd earns a ROCE of 8% in FY26. That is up from a trough of 1% in FY14. Return on invested capital clears the cost of that capital by −3.5 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 5.3% net margin on 0.93× asset turns.

FY26 ROCE is 8%, recovered from a FY14 trough of 1% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 5.3% net margin × 0.93× asset turns × 1.55× balance-sheet leverage ≈ 7.6% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 8.5% − 12.0% = a −3.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Morepen Laboratories Ltd carries total debt of ₹208 Cr against shareholder equity of ₹1,247 Cr as of Mar 26, a debt-to-equity of 0.17 — effectively unlevered. On the annual view that ratio went from 0.23 in FY22 to 0.17 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹208 Cr against shareholder equity of ₹1,247 Cr — a debt-to-equity of 0.17. On the annual view, debt-to-equity went from 0.23 (FY22) to 0.17 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 2.6 points of Morepen Laboratories Ltd over 8 quarters, the biggest move on the register. That takes promoters to 35.7% of the company. Domestic institutions moved −0.9 points over the same window, to 1.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −2.6 points over 8 quarters to 35.7%; Domestic institutions: −0.9 points over 8 quarters to 1.3%; Foreign institutions: −0.2 points over 8 quarters to 1.5%.

🚨 Why the register moved: promoters drove it (−2.6 points), alongside domestic institutions (−0.9 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Morepen Laboratories Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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