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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Morepen Laboratories Limited is a pharmaceutical company. The Company is in the business of manufacturing, producing, developing and marketing a range of active pharmaceutical ingredients (APIs), branded and generic formulations and also home health products. Its APIs include…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A decent, fast-growing business, priced for perfection — but flagged on governance.
Morepen Labs is scored on the pharma / healthcare framework. It keeps a slim 5.2% of every rupee of sales as net profit. Cash conversion lags the reported profit (CFO/PAT 0.34×) — worth a closer look. Free cash flow is worth about -1.8% of its market value.
Over the last 3 years revenue compounded at 9%/yr and profit at 35%/yr. Book value itself has compounded 18%/yr — the hallmark of a genuine compounder. Return on equity is a healthy 13.7%. In the latest quarter profit grew 58% versus the prior quarter.
At 53× earnings, the stock sits at the 84th percentile of its own 3.6-year range — the expensive end of where it has historically traded. Today's price implies ~13%/yr earnings growth for a decade. The forensic screen raises a red flag: Only ₹0.13 of cash per ₹1 profit over 4 years — earnings not converting to cash.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 26.74 | — | — |
| P/B | 3.65 | 4.11 | better |
| EV/EBITDA | 17.81 | 19.15 | better |
| ROE | 13.65 | — | — |
| ROCE | 15.7 | 6.87 | better |
| ROA | 8.17 | — | — |
| Quick Ratio | 1.82 | 4.8 | worse |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sun Pharmaceutical Industries | 40.6 | 5.0 | 13.8% |
| Divis Laboratories | 93.5 | 16.3 | 15.3% |
| Torrent Pharmaceuticals | 85.9 | 9.8 | 11.4% |
Revenue is on a 2-year growth streak. 9% CAGR — growing but slowly. Growth is decelerating — latest year grew slower than the year before.
Profit is on a 2-year growth streak. Profit is growing faster than revenue (35% vs 9%) — margin expansion is at work.
Operating margin has expanded from 4% to 7% — the business is keeping more of each rupee earned.
ROE at 8% — modest; the capital isn't working hard. Low variance across years — a predictable business that earns steadily on its equity base.
EPS dropped in the latest year despite possible profit changes — dilution or a profit dip could be at play. Profit grew faster than EPS (35% vs 31%) — share dilution is eroding per-share value. 31% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
1 of 4 years had negative operating cash flow — profitability on paper may not translate to cash. Cash conversion at 0.3× PAT — reported profit isn't translating into cash, raising earnings quality questions. Investing outflows exceed operating cash — the company relies on external funding to finance expansion.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue rose 31% sequentially — momentum is building. Wide quarterly swings (35% spread) — likely seasonality, lumpy orders, or project-based revenue. Run-rate stepping up — recent quarters average 36% above earlier ones.
Profit jumped 58% QoQ — check if this is operating leverage or a one-off item. Quarterly net margins are expanding (6% → 12%) — profitability per rupee of revenue is improving.
How today's P/E compares to the stock's own historical range. Dashed line = the 3.6y median.
Promoters at 35.6% — dispersed ownership; institutional flows drive the stock.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.