MOREPENLABMOREPENLAB Forensic Risk Analysis

Pharmaceuticals
Risk ClassWatch
Market CapN/A
Primary DriverEarnings Quality
Flagium AI Risk Score
Early signs of stress detected. Not yet widespread, but initial deterioration is visible.
30 / 100
+5 QoQ
Early Deterioration
Sentinel Insight

Financial profile remains stable for now. Weakness is detected in profitability and earnings quality. This suggests a building risk profile. Risk is increasing at a faster pace.

72.7th %ile (Sector)Accel: +1 Qtrs
Updated2026-06-02
Market View
₹45.79▼1.55%
PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Earnings Quality
+15.0 pts
Competitive Position
+15.0 pts
Final Composite Risk30 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 5 → 30 over 13 quarters.

Expected Direction
⚠ Watch
Primary Deterioration Drivers
  • Margin Compression
  • Inventory Stress
  • Industrial Margin Stress
What to Watch Next Quarter
  • Operating profit margins
  • Operating cash flow
  • Inventory turnover

Active Risk Objects (9)

CriticalHigh
Margin Compression
📊 Earnings QualityAnnualActive for 3 Years
More Detail
Impact Weight15/15
MomentumPersistent
Last SignalQ2 FY2026
Operating margin declined by 5.6 bps YoY for two consecutive quarters.

"Early signs of margin erosion. Input costs are beginning to eat into core profits."

Industrial Margin Stress
📊 Earnings QualityAnnualActive for 4 Years
More Detail
Impact Weight12/15
MomentumPersistent
Last SignalQ4 FY2026
MOREPENLAB: EBITDA margin compressed by 3.1 bps YoY.

"Margins are in freefall. Operating costs are growing significantly faster than revenue."

Relative Growth Weakness
📊 Earnings QualityAnnualActive for 4 Years
More Detail
Impact Weight12/15
MomentumPersistent
Last SignalQ4 FY2026
Revenue growth consistently lags behind sector median (12.8%).

"Earnings quality is under severe pressure. High accruals suggest potential revenue overstatement."

Profit Collapse
📊 Earnings QualityQuarterlyActive for 1 Qtrs
More Detail
Impact Weight8/15
MomentumDecaying
Last SignalQ1 FY2026
MOREPENLAB: Net Profit collapsed by 70.3% from FY2025 Q1 to FY2026 Q1.

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Cash Conversion Deficit
📊 Earnings QualityAnnualActive for 3 Years
More Detail
Impact Weight6/15
MomentumPersistent
Last SignalFY2026
MOREPENLAB: OCF below Net Profit in 3/3 recent years.

"Cash conversion is dangerously low. Operational cash flow is significantly trailing reported PAT."

Inventory Stress
📊 Earnings QualityAnnualActive for 1 Years
More Detail
Impact Weight15/15
MomentumDecaying
Last SignalQ2 FY2025
Inventory growth (22.3%) significantly outpaced revenue growth (4.2%).

"Inventory overhang is clearing. Stock levels are normalizing as sales momentum returns."

Operating Leverage Stress
📊 Earnings QualityAnnualActive for 3 Years
More Detail
Impact Weight10/15
MomentumPersistent
Last SignalQ4 FY2026
Expenses are consistently growing faster than revenues, creating operational pressure.

"Debt levels are creeping up. Monitor for signs of excessive borrowing for non-core activities."

Revenue-Debt Divergence
🏛️ Solvency & LeverageAnnualActive for 1 Years
More Detail
Impact Weight6/15
MomentumAccelerating
Last SignalFY2026
MOREPENLAB: Revenue fell 0.2% while Debt rose 145.2% in 2026 vs 2025.

"Debt levels are creeping up. Monitor for signs of excessive borrowing for non-core activities."

Working Capital Expansion
💧 Liquidity & CoverageAnnualActive for 1 Years
More Detail
Impact Weight10/15
MomentumDecaying
Last SignalQ4 FY2024
Working capital expansion detected: Receivable days increased by 6.0%.

"Working capital pressure is receding. Cash previously locked in operations is being released."

Risk Trajectory
Historical 12-quarter risk trend (Q-11 to Q0) followed by a 2-quarter predictive funnel (Q+1, Q+2).
Loading Chart
Resilience Matrix
Diagnostic benchmarking comparing structural sensitivity and risk buffers against sector medians.
MetricValuevs SectorSignal
Volatility (σ)6.257.70✅ RESILIENT
Sensitivity (ε_s)11.00✅ RESILIENT
Escalation Prob.5%5%✅ NEUTRAL
Safety Buffer+36.0+47.0📈 CRITICAL
Forensic Benchmark Context: Pharmaceuticals (n=99 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart
Share Price
Risk Score (0-100)
Market Performance
₹45.79(-1.55%)
1M Divergence+8.44%
1 Week+4.26%
1 Month+10.71%
6 Months+5.39%
1 Year-29.1%
2 Year-0.56%
3 Year+74.5%
Sector Average (1M)+2.27%
Sentinel Forensic Assessment
ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Early Signals and currently deteriorating. Recent structural triggers in earnings quality suggest a building pressure on the underlying framework. Material forensic traces are visible in operational margins and profitability metrics, indicating a progressive erosion of structural stability. Strategic vigilance is advised as structural decay is accelerating.

MOREPENLAB • MARKET STRUCTURE

Stage 1 — Accumulation

The company is in a foundational phase. Risk metrics are stabilizing as the company builds a base for potential future fundamental improvement.

Stage Transition Prob.12%
Trend QualityStabilizing
Phase Progression
Phase Progression Score47.5%
Readiness LabelModerate (Transition Potential Building)
Probability of Advancing12%
CoinTree Momentum
Composite Z-Score+0.2720σ
Improving momentum strength
Universe Rank
A cross-sectional rank of this stock's composite momentum score compared to all other tracked equities in the universe. A rank of #1 of 1035 means it has the strongest overall price momentum in the market.
#631 of 2716
Top 23.23% in momentum strength
Timeframe Sparklines
1W+4.3%
1M+10.7%
6M+5.4%
Weinstein Indicators
150 DMA₹41.41
200 DMA₹43.42
150 DMA Slope-1.7192%Declining
Relative Strength+10.87%Leading
Relative Turnover (RTR)1.1559
ParticipationNeutral

PEER COMPARISON

Ranked comparison against sector peers

This company shows higher risk compared to the Sector Mean (19).
AARTIDRUGSAarti Drugs Limited
19 Risk
Sector %ile51th
Delta-5
Active Flags11
Accel+0
Competitive Position

Stable

AAREYDRUGSAarey Drugs & Pharmaceuticals Limited
23 Risk
Sector %ile63th
Delta-5
Active Flags20
Accel+0
Balance Sheet Stress

Watch

MOREPENLABMOREPENLAB
30 Risk
Sector %ile73th
Delta+5
Active Flags9
Accel+1
Earnings Quality

Watch

BALAXIBALAXI PHARMACEUTICALS LIMITED
45 Risk
Sector %ile96th
Delta+10
Active Flags40
Accel+1
Balance Sheet Stress

Moderate Deterioration

* Peer comparison is based on risk signals, not valuation or returns.

Risk Profiles

Solvency
10100th %ile
VS Sector Median (8.5)
Governance
10100th %ile
VS Sector Median (8.5)
Earnings Quality
00th %ile
VS Sector Median (8.5)
Balance Sheet Stress
10100th %ile
VS Sector Median (8.5)
Competitive Position
00th %ile
VS Sector Median (8.5)
Growth Sustainability
10100th %ile
VS Sector Median (8.5)

Deterioration Timeline

2026

Operating Leverage Stress

2026

Relative Growth Weakness

2026

Industrial Margin Stress

2026

Relative Growth Weakness

2026

Industrial Margin Stress

2026

Margin Compression

2026

Relative Growth Weakness

2026

Margin Compression

2026

Relative Growth Weakness

2026

Industrial Margin Stress

2026

Operating Leverage Stress

2026

Revenue-Debt Divergence

2026

Cash Conversion Deficit

2025

Margin Compression

2025

Industrial Margin Stress

2025

Operating Leverage Stress

2025

Inventory Stress

2025

Cash Conversion Deficit

2024

Working Capital Expansion

2024

Cash Conversion Deficit

Key Financials (INR Cr)

PeriodRevenueNet ProfitOCFDebt
FY20261,8279533195
FY20251,8301183279
FY20241,704967329
FY20231,42439-9125