Recent Price Movement and Market Context
The stock of Brooks Laboratories has been on a downward trajectory for six consecutive trading sessions, resulting in a cumulative return of approximately -6.95% over this period. Today's fall of 1.08% further extends this trend, with the stock underperforming its sector by 0.7%. Currently, Brooks Laboratories is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained selling pressure.
In contrast, the broader market index, Sensex, opened flat and is trading marginally lower by 0.03% at 85,501.78 points. The Sensex remains close to its 52-week high of 86,159.02, just 0.77% away, supported by bullish moving averages where the 50-day DMA is positioned above the 200-day DMA. Mid-cap stocks are leading the market gains, with the BSE Mid Cap index up by 0.1% today.
Long-Term Performance and Valuation Metrics
Over the past year, Brooks Laboratories has recorded a negative return of 46.73%, a stark contrast to the Sensex's positive 8.96% return during the same period. The stock's 52-week high was Rs.202.8, indicating a substantial decline from its peak. This performance places Brooks Laboratories among the weaker performers in the Pharmaceuticals & Biotechnology sector and the broader market.
From a fundamental perspective, the company exhibits a modest average Return on Equity (ROE) of 2.42% over the long term, reflecting limited profitability relative to shareholder equity. Net sales have shown a compound annual growth rate of 4.36% over the last five years, indicating slow expansion. Additionally, the company's ability to service its debt appears constrained, with an average EBIT to Interest ratio of -3.69, suggesting challenges in covering interest expenses from operating earnings.
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Recent Financial Results and Profitability Trends
Despite the stock's subdued price performance, Brooks Laboratories has reported positive financial results in recent quarters. The company declared favourable results for four consecutive quarters, with net sales growing by 4.06% in the latest period ending September 2025. Operating cash flow for the year reached Rs.2.63 crore, marking the highest level recorded.
Profit before tax excluding other income (PBT less OI) for the latest quarter stood at Rs.7.59 crore, reflecting a growth rate of 2563.2% compared to the previous four-quarter average. Similarly, profit after tax (PAT) for the quarter was Rs.7.98 crore, showing an increase of 1472.4% relative to the prior four-quarter average. These figures indicate a notable improvement in profitability metrics over the near term.
Valuation and Shareholding Structure
Brooks Laboratories currently holds a Return on Equity of 12.1% in the recent assessment, with a Price to Book Value ratio of 2.4. This valuation is considered fair and is trading at a discount relative to the average historical valuations of its peers within the Pharmaceuticals & Biotechnology sector. The company's Price/Earnings to Growth (PEG) ratio stands at 0.1, reflecting the relationship between its earnings growth and valuation.
The majority shareholding is held by promoters, indicating concentrated ownership within the company.
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Comparative Performance and Market Position
Brooks Laboratories has underperformed the BSE500 index over multiple time frames, including the last three years, one year, and three months. This trend highlights the stock's relative weakness compared to a broad market benchmark. The Pharmaceuticals & Biotechnology sector itself has seen mixed performance, with some mid-cap stocks leading gains, while Brooks Laboratories remains on the lower end of the spectrum.
The stock's current trading below all major moving averages further emphasises the prevailing downward momentum. This technical positioning suggests that the stock has yet to find a stable support level after its decline from the 52-week high of Rs.202.8.
Summary of Key Metrics
To summarise, Brooks Laboratories is currently priced at Rs.91.7, marking its lowest level in the past 52 weeks. The stock has experienced a near 47% reduction in value over the last year, contrasting with the Sensex's positive returns. While recent quarterly results show improved profitability and cash flow, the company’s long-term growth and debt servicing capacity remain modest. The stock trades at a valuation discount relative to peers but continues to face pressure from its technical indicators and broader market comparisons.
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