1. At a Glance
If pharmaceutical drama had an IPL version,Morepen Laboratories Ltdwould be the team that suddenly drops its star player mid-season, raises ₹200 crore from the crowd, and then still finds a way to win a match on accounting brilliance. As ofNovember 2025, Morepen trades at ₹44 per share, nursing amarket cap of ₹2,402 crore, and a bruised ego after a-40.5% YoY return.
The September 2025 quarter (Q2 FY26) wasn’t exactly “Doctor’s Delight” either —Revenue stood at ₹412 crore(down5.97% QoQ) andPAT crashed 49%to₹17.8 crore. The stock’sP/E sits at 31.8x, meaning investors are still paying luxury prices for a company that just pulled off an“exceptional gain of ₹2,472.95 lakh”while losing control ofDr. Morepen Ltdin July.
Operating margin fell back to7%, ROE is11.8%, ROCE15.1%, and debt crept up to₹158 crore. Yet, with 53 granted patents, 1,750 million Gluco Strips sold, and 6.33 million BP monitors pumping data, Morepen remains India’s OG of “Doctor G meets Excel Sheet”.
2. Introduction
Let’s start with a confession — few pharma companies have aged as dramatically as Morepen Labs. This is the same brand that once sold Burnol for your burns and now seems to apply it metaphorically to its own financial wounds.
The market once loved its “Dr. Morepen” tag for health devices, but somewhere between COVID-era sugar tests and post-pandemic hangovers, the stock’s glucose levels spiked and then crashed faster than a bad HbA1c reading.
Despite the melodrama, the company has a legitimate empire:API manufacturing,branded formulations, andmedical devices. It’s a rare small-cap that plays in bothchemistry and cardiology, exporting to80+ countrieswhile also selling BP monitors on Flipkart flash sales.
In FY25, it hit itshighest-ever PAT of ₹118 crore— and even declared a dividend for the first time in23 years. But Q2 FY26 reminded everyone that the pharma business isn’t a treadmill — it’s a blood-pressure monitor; one quarter up, the next flatlining.
Will Morepen’s big push into medtech (through its new subsidiaryMorepen Medtech Ltd) and Dubai expansion be the statin shot it needs? Or will it keep popping “accounting vitamins” while the real growth remains in clinical trials? Let’s find out.
3. Business Model – WTF Do They Even Do?
Morepen’s business is split like a medical textbook:
1️⃣ Pharma Business (70% of H1 FY25 revenue):The heart of the company, literally and financially. Within this, theAPI segmentcontributes about 75%. Think of APIs (Active Pharmaceutical Ingredients) as the base masala for the world’s drug biryani — and Morepen is the chef who supplies the spice mix.
The company dominates in six key molecules:
- Montelukast (70% market share)– the anti-asthmatic star.
- Loratadine & Desloratadine (69% and 49%)– anti-allergy kings.
- Fexofenadine, Atorvastatin, Rosuvastatin– the cholesterol warriors.
Together, these account forover 80% of its API revenue. Morepen has mastered the art of “generic domination” — low glamour, high export, and stable cash.
2️⃣ Finished Formulations & OTC (25% of Pharma):This segment is where theDr. Morepenbrand flexes. FromLemolate(the desi Vicks challenger) toBurnol(the meme legend), these products fill pharmacies and first-aid kits across India.
3️⃣ Medical Devices (30% of revenue):Welcome to the home-health circus — glucometers, BP monitors, oximeters, thermometers — basically everything your gym trainer ignores. This segment grew9.35% YoY in H1 FY25, led by the iconicGlucoOnebrand.
The twist?In Jan 2025, the company decided tospin off this devices divisioninto a new subsidiary,Morepen Medtech Ltd, citing focus and “value unlocking”. Translation: “We’ll list it separately when the market mood improves.”
So, what does Morepen actually do? Everything from chemistry to cardiology, from glucose strips to global patents. It’s like a doctor with a second income as an engineer.
4. Financials Overview
| Metric (₹ Cr) | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 412 | 438 | 425 | -5.9% | -3.1% |
| EBITDA | 31 | 44 | 24 | -29.5% | +29.2% |
| PAT | 17.8 | 35 | 11 | -49.1% | +61.8% |
| EPS (₹) | 0.75 | 0.64 | 0.20 | +17.2% | +275% |
Commentary:This quarter’s financials look like a patient with irregular heartbeat —Revenue down, profit down, EPS up. The only reason EPS didn’t collapse is a mix of better margins and that spicy ₹24.7
crore “exceptional gain” (read: not operational).
Operating margins at7%are back to FY23 levels, which in pharma terms means, “the oxygen mask is still on.” But hey, EBITDA jumped 29% QoQ, so maybe the patient twitched.
5. Valuation Discussion – Fair Value Range Only
Let’s try valuing this pharmacy circus three ways.
Method 1: P/E Method
EPS (TTM): ₹1.80Industry Average P/E: 31.1→ Fair Value = ₹1.80 × 31.1 =₹56 per share
Discounting 20% for small-cap volatility →₹45–₹56 range.
Method 2: EV/EBITDA Method
EV = ₹2,521 CrEBITDA (TTM) = ₹152 CrEV/EBITDA = 16.6× (already given)
Industry average EV/EBITDA ≈ 15×So, fair EV = 15 × 152 = ₹2,280 Cr → Fair price range = ₹40–₹50.
Method 3: DCF (Desi Conservative Flow)
Assuming FCF normalizes to ₹100 Cr (post capex recovery) and grows 10% for 5 years, then terminal 5%.Discount rate 12%.→ Intrinsic value roughly₹47–₹55 per share.
Fair Value Range (Educational Purpose Only): ₹45–₹55 per shareDisclaimer: This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Oh, where to start. Q2 FY26 has been a full-on “pharma thriller.”
- Exceptional Gain Alert:On31 July 2025, Morepen lost control ofDr. Morepen Ltd.(a subsidiary), but in return booked a₹24.7 crore exceptional gain. How? Ask your CA friend who calls himself “creative accountant.”
- QIP Season:InAugust 2024, Morepen raised ₹200 crore through a Qualified Institutional Placement. BySeptember 2025, ₹35 crore remained unutilized. The Monitoring Agency confirmed “no deviation.” Translation: “Funds are where they’re supposed to be. We checked.”
- Dubai Dreams:InMay 2025, Morepen formed a wholly-owned subsidiary inDubai, aiming to expand exports. Paid-up capital: AED 50,000. The Indian way of saying: “Let’s open a new branch and call it globalization.”
- Korean Credit Kick:On10 November 2025, the company took a₹50 crore unsecured term loanfromKookmin Bank, Korea — 3-year tenure, 1-year moratorium, promoter guarantee included. Because what’s a small-cap without a little foreign spice?
- Dividend after 23 years:FY25 saw a ₹0.20 dividend
