Morepen Laboratories Ltd: Q4 Dip, Dividend Revival & API‑Devices Growth

Morepen Laboratories Ltd recently drew investor attention with its Q4 FY25 results, revival of dividends after 23 years, and strong momentum in its API and medical devices segments. Here's a detailed update:

📉 Q4 FY25 Highlights: Revenue Up, Profit Impacted

• Revenue Growth: Revenue rose 10.1% YoY to ₹465.9 cr.
• Profit Pressure: Net earnings fell 30% YoY to ₹20.3 cr; EBITDA margin dropped from 11.4% to 9%.
• Positive Reaction: Shares surged 7% post-results, indicating investor focus on top‑line growth.

📊 FY25 Full‑Year & Dividend Revival

• Annual Revenue: Increased 7.4% to ₹1,830 cr; PAT climbed to ₹118 cr (up 22% YoY).
• Dividend Milestone: Proposed ₹0.20/share dividend—the first in 23 years.

🧬 API & Medical Devices: Core Growth Drivers

• API Segment: Generated ₹989 cr, with 72% from exports to 80+ countries.
• Devices Segment: Delivered ₹496 cr (up 12% YoY) through glucometers and BP monitors.

📈 Valuation & Financial Health

• Valuation: Trades at ~3× book value, ~29× P/E; ROE ~12%, ROCE ~15%; minimal net debt.
• Price Range: 52‑week range ₹43–96; recent levels near ₹60.

🔍 Key Monitorables Ahead

• Margin Recovery: Will Q1 FY26 show improved profitability?
• Dividend Consistency: Can Morepen sustain payouts after the long hiatus?
• New Product Launches: Progress on API pipeline and medical device approvals.
• Export Growth: Continued momentum in global API and device markets.

📚 Sources

• Angel One – Q4 FY25 earnings and dividend details
• Bajaj Broking – Profit decline and margin analysis
• Business Standard – Dividend revival after 23 years
• Business Today – API and device segment performance
• Screener – Valuation multiples and financial ratios