MOREPEN LABORATORIES
(NSE: MOREPENLAB)
Business:
Morepen is a vertically integrated pharmaceutical + healthcare company.Strong presence in APIs and exports, along with a growing medical devices business.The company is now moving towards a more valuable CDMO and innovation-led manufacturing model.Q1 FY27 Performance đ
Revenue: âš570 Cr | +34% YoYEBITDA: âš87.7 Cr | +207% YoYEBITDA Margin: 15.25% vs 6.65% YoYPAT: âš56.35 Cr | +394% YoYAPI business grew 31%API exports grew 42%Medical Devices grew 19%Export revenue grew 111% YoYBiggest Growth Trigger đ
The âš825 Cr CDMO mandate has entered full scale commercial execution.
âš58 Cr of commercial CDMO dispatches already completed in Q1.Capacity roadmap targets expansion up to 1,200 KL by FY30.This could gradually shift the business towards longer-duration global partnerships and higher-value manufacturing.Other Positives đĸ
Four consecutive USFDA inspections with Nil Form 483 observations.Strong export opportunity across 90+ countries.Medical Devices provides a second scalable growth engine.Improving operating leverage is clearly visible.Higher contribution from CDMO could potentially improve the quality and predictability of earnings.What Iâm Watching â ī¸
Q1 margins expanded sharply, so sustainability of this improvement is important.CDMO execution and capacity expansion need to remain on track.API business is still an important part of the earnings mix.Working capital and cash flow need monitoring as the company scales.After the strong stock move, expectations are also significantly higher.My View:
My entry is âš51.50 and the story has developed positively since then.
The most important change for me is that Morepen is no longer just an API recovery story. CDMO commercialization + API growth + medical devices + strong export growth together provide multiple potential growth engines.
I have updated my technical chart again and revised my higher targets based on the current price action.
For me, the key confirmation remains sustained earnings growth + CDMO execution + margin sustainability.
Technical Setup:
đ Refer to the chart for my technical levels, support/resistance zones and price action view.
Disclaimer: Educational content only. Not investment advice. Please do your own research.
