Pharma Stock Under ₹60 in Focus After ₹118 Cr Net Profit in Q4 and First Dividend in 23 Years
Pharma Stock: In a move welcomed by long-term shareholders, Morepen Laboratories declared a dividend of ₹0.20 per equity share on a face value of ₹2, pending approval at the upcoming Annual General Meeting. This is the first dividend announcement in 23 years, signaling the company’s renewed focus on rewarding its shareholders and possibly ushering in a new chapter of consistent payouts.
Segment-Wise Performance: Medical Devices Outshine Pharma
Pharma Division:
- FY25 revenue stood at ₹1,334 crore, growing 5.8% over FY24.
- Q4 FY25 revenue rose 8.5% YoY to ₹368 crore.
Medical Devices Division:
- FY25 revenue jumped 12% to ₹496 crore from ₹443 crore in FY24.
- Q4 FY25 revenue soared 15% YoY to ₹103 crore, indicating robust consumer demand.
Clearly, the medical devices segment is outpacing pharma, becoming a key growth driver for the company.
About Morepen Laboratories
Established as a major name in the Indian pharmaceutical landscape, Morepen Laboratories specializes in the manufacturing and distribution of Active Pharmaceutical Ingredients (APIs), health devices, and Over-The-Counter (OTC) products. Its popular brand, Dr. Morepen, offers a wide range of health products that cater to allergies, diabetes, hypertension, and diagnostic needs like glucose monitors and thermometers.
Morepen Laboratories Key Financial Ratios
| Metric | Value |
|---|---|
| Market Capitalization | ₹3,287 Cr |
| Current Price | ₹60.00 |
| 52-Week High/Low | ₹101 / ₹41.7 |
| Stock P/E | 27.8 |
| Book Value | ₹21.1 |
| Dividend Yield | 0.00% (Pre-AGM) |
| Return on Capital Employed (ROCE) | 15.1% |
| Return on Equity (ROE) | 11.8% |
| Face Value | ₹2.00 |
Why This Stock Is in Focus
- Under ₹60 with a turnaround dividend story
- Highest-ever annual net profit despite quarterly pressure
- Strong growth in medical devices segment
- Solid return ratios (ROCE 15.1%, ROE 11.8%)
- Stable and growing revenue base
With a growing footprint in health devices and a strong portfolio in OTC and pharmaceutical APIs, Morepen is emerging as a balanced growth story in the Indian healthcare sector.
Frequently Asked Questions (FAQs)
Q1. Why are investors interested in Morepen Laboratories right now?
A: The company reported a record annual net profit of ₹118 crore and announced a dividend for the first time in 23 years, which sparked renewed investor interest.
Q2. What was the Q4 FY25 performance like?
A: Revenue rose by 10.16% YoY to ₹466 crore, but net profit dropped 31.03% YoY to ₹20 crore due to margin pressures.
Q3. Is Morepen Laboratories paying dividends now?
A: Yes, the company has proposed a ₹0.20 per share dividend, pending shareholder approval—its first payout in over two decades.
Q4. What segments are driving growth for Morepen?
A: While the pharma division saw steady growth, the medical devices segment showed higher momentum with 15% YoY growth in Q4 FY25.
Q5. Is Morepen a good long-term stock under ₹60?
A: With strong fundamentals, a diversified product base, and renewed focus on shareholder returns, it is being closely watched by long-term investors.
Conclusion
Morepen Laboratories is attracting attention not just for its stock price under ₹60, but also for delivering a combination of strong financial performance, dividend revival, and promising growth in medical devices. For value-seeking and long-term investors, this pharma stock could be a compelling story in the making.
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