If you’ve been keeping an eye on the stock market today, you probably noticed a sudden, massive spike in Morepen Laboratories Limited. It’s not every day that a stock under ₹50 sees a buying frenzy, but Monday was different. Morepen Labs shares skyrocketed by nearly 19%, and there’s a very solid reason behind it.
The Big News: A ₹825 Crore Jackpot The reason investors are tripping over each other to buy this stock is a massive ₹825 crore CDMO (Contract Development and Manufacturing Organization) deal. Morepen Labs has secured this contract from a major global pharmaceutical player. In a statement to the exchanges, the company mentioned that the work is expected to kick off in the next 4 to 5 months.
For a company of this scale, a deal worth over ₹800 crore is a game-changer, and the market reacted exactly how you’d expect—with a surge of green.
How the Numbers Look The stock opened at ₹44.36 on the BSE and quickly climbed to an intra-day high of ₹46.90. While the company has a 52-week high of ₹70.40, it has been struggling over the last year, actually dropping about 10% in value while the broader market was rising.
However, if you look at the longer picture, patient investors are still smiling. Over the last three years, Morepen has delivered nearly 80% returns. Today’s jump of 19% feels like a much-needed shot in the arm for the stock.
Dividend Comeback Interestingly, Morepen Labs has started rewarding its shareholders again. After a long silence of 14 years (since 2001!), the company finally distributed a dividend in 2025. It’s a small amount—₹0.20 per share—but it sends a strong signal that the company is back on track.
Should You Care? With a market cap of around ₹2551 crore and a steady promoter holding of 35.65%, the company seems to be entering a new phase of growth. The CDMO deal isn’t just about the money; it’s about the credibility that comes with working with a global pharma giant.
As always, while the “buying loot” for this sub-₹50 stock is exciting, the stock market comes with its own set of risks. If you’re looking at Morepen Labs, today’s news certainly makes it a stock worth watching very closely.
Read More: The Penny Stock That Just Jumped 19%: Is Morepen Labs Finally Making a Comeback?
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