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Business News/ Markets / Stock Markets/  Pharma stock Morepen Laboratories near 52-week high after Q3 results 2024. Will it climb to a new peak?
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Pharma stock Morepen Laboratories near 52-week high after Q3 results 2024. Will it climb to a new peak?

Morepen share price is on an uptrend and is close to a fresh breakout at ₹55. Once it breaches this hurdle, the stock may reach ₹60 and ₹64 levels in the short term, say experts

Stock market today: Pharma stock today opened upside and went on to touch an intraday high of ₹55.10 apiece on NSE, missing to breach the existing 52-week high of ₹56.20 levels by a short marginPremium
Stock market today: Pharma stock today opened upside and went on to touch an intraday high of 55.10 apiece on NSE, missing to breach the existing 52-week high of 56.20 levels by a short margin

Stock market today: After climbing to 52-week high of 56.20 apiece on NSE in the last week of December 2023, shares of Morepen Laboratories Ltd remained in the base building mode for near one month. However, the pharma stock is trying to come out of the base building mode and the stock has been rising continuously from the last week of january 2024. 

After the announcement of Q3 results 2024 and promising guidance post-earning, Morpean share price today came close to its 52-week high.

Morepen share price today opened higher and went on to touch an intraday high of 55.10 apiece on NSE, just 1.10 away from the 52-week high of 56.20 apiece. 

According to stock market experts, Morepen shares gave strong upside movement during Covid-19 pandemic as demand for its products were quite high. But, after the pandemic subsided, the surplus business for the company got evaporated, which triggered profit booking in the scrip. Now, the current set of quarterly numbers of the copany is signaling that the pharma company has a stable business now and market has completely discounted this scrip in post-Covid scenario.

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Stock market experts said that Morepen share price is in uptrend and on cusp of giving fresh breakout at 55. Once it breaches this hurdle decisively, the stock may go up to 60 and 64 levels respectively in the short term.

Morepen share price outlook

Speaking on the reason for uptrend in Morepen shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Morepen Laboratories Ltd witnessed strong upside in its business volume during the Covid-19 pandemic. This could happen due to high demand for the API and its other medical products during the pandemic. This reflected in strong set of quarterly numbers of the company and a strong upside in the stock. But, once the Covid-19 pandemic subsided, then in the post-Covid scenario, its surplus business got evaporated and company's quarterly numbers got a styrong hit. But, the company's business has now seems stabilized and the company is reqady to take off after touching its pre-Covid normalcy levels."

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Morepen share price target

On the outlook for Morepen shares, Sumeet Bagadia, Executive Director at Choice Broking said, "MMorepen share price is looking positive on chart pattern and facing hurdle at 55. Once it gives breakout above this hurdle on a closing basis, we may expect the scrip to touch 60 and 64 in short term"

Morepen Laboratories Q3 results 2024

In the October to December 2023 quarter, the net revenue has grown up by 28% to almost 100 Crores from 350 Crores to almost 450 Crores. It directly adds gross margins to the bottomline, so another 30 Crores to 40 Crores is added. Then accordingly the EBITDA number, all the addition, the gross margin is directly getting added to the EBITDA, so EBITDA had jumped from 22 Crores to 55 Crores. So there is 33 Crores increase in EBITDA, which is like 151% increase in EBITDA margins for the company. This is one area which the company was lacking and struggling and trying to find ways how do they increase their EBITDA and certainly the pressure was to increase the revenues on the gross because most of the expenses were fixed expenses.

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"EBITDA for the first time after a long gap is in the double digit, so it is around 12.18% EBITDA margins, so it is almost double as compared to EBITDA margin last year. Last year EBITDA was 6.22% so now this year EBITDA is 12.18% which is pretty good and pretty encouraging for the whole team and I am happy to share the shareholders that after a nice EBITDA certainly we do not have much interest as you know we are a debt free company. So all of the profit is almost out of Rs.33 Crores Rs.30 Crores is going to the bottomline profit before tax from Rs.14 Crores to Rs.44 Crores so the wholesome growth in the profit before tax and of course the similar numbers are visible in the profit after tax. In after tax also from Rs.9 Crores to Rs.32 Crores Rs.24 Crores is going to the bottomline, profit after tax has increased by 256% in the quarter. So it is almost three-and-a-half times the 256% increase and I do not have to add that," the company management said during the guidance call post-results for the third quarter of the current financial year.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Asit Manohar
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Published: 05 Feb 2024, 02:06 PM IST
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