Penny Stock Under Rs 60: This Small-cap API Manufacturer Declares Dividend After 23 Years as FY25 Profit Surges 21.6 Per Cent
The company has delivered a 1-year return of 30.86 per cent and a 3-year return of 54.03 per cent.
In a landmark announcement that signals a new era of growth and Þnancial strength, Morepen Laboratories Ltd board has proposed to declared a dividend (Rs 0.20 per share) after a gap of 23 years, marking a deÞning moment in the company’s four-decade legacy, subject to approval of the shareholders in the forthcoming Annual General Meeting.
The declaration comes on the back of excellent Þnancial results for FY25, with gross revenue rising to Rs 1,830 crore, up from Rs 1,704 crore in FY24 — a 7.4 per cent year-on-year increase. EBITDA surged 11.5 per cent to Rs 192 crore, and ProÞt After Tax jumped to Rs 118 crore, while Earnings Per Share (EPS) climbed to Rs 2.20, up 17 per cent from the previous year.
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Sushil Suri, Chairman & Managing Director of Morepen Laboratories Ltd., said: “This moment is symbolic – it’s not just about distributing proÞts; it’s about rewarding trust. We always believe in the “Joy of Growing Together”. Declaring a dividend after 23 years reflects our Þnancial strength, operational excellence, and long-term vision of sharing and caring. Our shareholders have stood by us, and it’s time we give back.”
The Active Pharmaceutical Ingredients (API) business continued to be the largest revenue contributor, accounting for Rs 989 crore. Morepen’s API products are exported to over 80 countries, generating 72 per cent of API revenue from international markets. The Medical Devices segment also performed well, posting a 12 per cent year-on-year increase in revenue to Rs 496 crore. The segment includes popular home health products such as glucometers and blood pressure monitors.
As of May 13, 2025, the stock price of Morepen Laboratories stands at Rs 58.52, with a 52-week high of Rs 96.26 and a 52-week low of Rs 42.80. The company has delivered a 1-year return of 30.86 per cent and a 3-year return of 54.03 per cent, indicating long-term value creation for shareholders. With a market capitalisation of Rs 3,309 crore and a Price-Earnings (PE) ratio of 24.37, the stock has drawn interest from investors seeking potential multibagger opportunities.
Morepen is also expanding its manufacturing capacity, including new API facilities and a dosage production unit. Additionally, the restructuring of its Medical Devices division into a subsidiary—Morepen Medtech Ltd signals its focus on consumer health and innovation. The company is targeting Rs 5,000 crore in revenue by 2030, aiming to strengthen its position across global pharmaceutical and medical technology markets.
Disclaimer: The article is for informational purposes only and not investment advice.