Morepen Lab Stock | Warning!!! | Complete Stock Analysis | Falling Reason ? | Checkout Now Or Repent
Updated: May 17
In Morepen's three-and-a-half decade journey, they have always aspired to be an organization with tangible, visible differences where every individual action is inspired by a deep, humbling desire to make a difference to the lives we touch. Their state-of-art manufacturing facility in the picturesque environs of Baddi comprises a scientifically integrated complex of 10 plants, each with a specific product profile. The company's extensive R&D facilities and factories are manned by a dedicated team of professionals who ensure stringent quality standards. With a strong global presence, Morepen exports to over 75 countries with certifications from all major regulatory authorities like USFDA, WHO GMP, EU GMP. Their domestic products under the brand name, Dr. Morepen and Gubb World have a huge range of healthcare, grooming and OTC products trusted by over 100 million consumers.
Morepen Laboratories Limited is an India-based pharmaceutical company. Its products include Loratadine, Montelukast Sodium, Atorvastatin Calcium and Sultamicillin. The company markets formulation products in various therapeutic categories, such as antibiotics, gastrointestinal, respiratory, analgesic, anti-allergic and neuropsychiatry with brands, such as Saltum, Saltumax, Cefpopen, Cefpen-S, Dom-DT, Acifix, Rabipen-DSR and Montelast. It has new products added to the therapeutic categories, including Kilbac, Ducal D, Aclomore and Montelast-L. The company has three state-of-the-art manufacturing plants in the northern state of Himachal Pradesh (HP) in India.
Part 1 - Fundamental Analysis
Strengths and Weaknesses Based On Yearly Performance
Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK.
India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
According to the Economic Survey 2020-21, the domestic market is expected to grow 3x in the next decade. India’s domestic pharmaceutical market is estimated at US$ 41 billion in 2021 and likely to reach US$ 65 billion by 2024 and further expand to reach ~US$ 120-130 billion by 2030.
India's biotechnology industry comprising biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics. The Indian biotechnology industry was valued at US$ 64 billion in 2019 and is expected to reach US$ 150 billion by 2025.
India’s drugs and pharmaceuticals exports stood at US$ 20.14 billion in FY21 (until January 2021).
The Union Cabinet has given its nod for the amendment of existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100% under the automatic route for manufacturing of medical devices subject to certain conditions.
The drugs and pharmaceuticals sector attracted cumulative FDI inflow worth US$ 17.75 billion between April 2000 and December 2020 according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).
Medicine spending in India is projected to grow 9 12% over the next five years, leading India to become one of the top 10 countries in terms of medicine spending.
Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the rise.
The Indian Government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programs, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.
Key Positions Based On Yearly Results
Chairman & Managing Director
Sushil Suri, serves as the Chairman and Managing Director of Morepen Laboratories.
Whole Time Director
Arun Kumar Sinha and Sanjay Suri, are serving as Whole Time Directors of the company.
Shareholding Pattern as on 31st December, 2020
Returns on Share
52 Week Higher Level: 15.50 INR
52 Week Lower Level: 72.05 INR
Sun Pharma, Divis Labs, Dr. Reddy’s Labs, Cipla, etc.
Part 2 – Technical Analysis
The above image shows the Daily chart of MOREPENLAB along with 5, 13 and 26 Days Exponential Moving Averages (EMA), Moving Averages Convergence-Divergence (MACD), Relative Strength Index (RSI), Bollinger Bands (BB) and Volume.
Around 6 months later the stock gained momentum and is soaring new heights. On 06th April, 2021 MACD cut the Signal line from below with more than average volume and RSI at above 60 level, since then the uptrend is seen in the Morepen Laboratories stock.
Since 06th April, 2021 to 03rd May, 2021 almost a month long the stock successfully moved with the upper Bollinger Band and on 04th May, 2021 it refused to go along the same way and a down move is seen in last few days.
Currently, 72 and 59 are acting as resistance and support levels for the stock.
It seems, the stock might go in sideways trend after seeing a long bull rally for a quite few time.
1. 5, 13 and 26 Days Exponential Moving Averages (EMA)
On 07th April, 2021 5 DEMA has able to cut 13 & 26 DEMA from below since then an up move is being seen in the stock price and is near to cut 13 DEMA from above which could provide shorting opportunities for bears.
2. Moving Averages Convergence-Divergence (MACD)
MACD which is considered as a leading indicator, has the cut the Signal line from above as on 11th May, 2021 with MACD Histogram below the 0 (zero) levels, offering a strong shorting opportunity for bears.
3. Bollinger Bands
In last few days, the stock is moving with upper Bollinger Band, which signals as there could correction be seen in upcoming days and as of 04th May, 2021 it is seen. It’s good for shorting opportunities while to buy for medium as well as long term, waiting for some period could turn out profitable as fundamentally the stock is good to buy.
4. Relative Strength Index
The RSI of MOREPENLAB stock is roughly around 60.72 as on 14th May, 2021 showing a decline from 03rd May, 2021, which might signal as the stock was in an overbought zone and a correction is seen and it might be willing to enter in sideways zone. Waiting for couple of days for medium term investors will be well. While shorting opportunities would be available.
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