Brooks Laboratories Limited (BROOKS) AI Stock Analysis

Brooks Laboratories Limited

(NSE:BROOKS)

Select Model

Rating:63Neutral

Price Target:INR 65.00▲(6.82% Upside)

Action:reiterated

Date:10/09/26

The score is driven mainly by improved profitability and a low-leverage balance sheet, tempered by the sharp FY2026 revenue drop and weaker cash conversion versus net income. Technicals are supportive with price above major moving averages, while valuation appears moderate at ~15.5x earnings.

Positive Factors

Low LeverageVery low leverage gives Brooks financial flexibility to withstand operating volatility, fund selected investments, and manage obligations without heavy interest pressure. The sizable equity base also provides a stronger cushion if profitability weakens again over the next several quarters.

Negative Factors

Revenue ContractionA sharp decline in revenue weakens the durability of the recent earnings recovery and may reduce operating leverage across the business. Sustained top-line pressure could limit scale benefits, constrain reinvestment, and make future profitability more dependent on cost control than demand growth.

Brooks Laboratories Limited (BROOKS) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.78B
Dividend Yield: ―
Average Volume (3M): 11.52K
Price to Earnings (P/E): 13.5
Beta (1Y): 1.78
Revenue Growth: -7.71%
EPS Growth: 927.75%
Country: India
Employees: 347
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Brooks Laboratories Limited Business Overview & Revenue Model

Company Description

Brooks Laboratories Limited is a pharmaceutical enterprise engaged in the contractual manufacturing and distribution of medicinal products. The company serves both the Indian domestic market and international clients. Its comprehensive product portfo...

Brooks Laboratories Limited Financial Statement Overview

Summary

Financials show a meaningful profitability turnaround in FY2026 (strong net margin ~29%) and a conservatively levered balance sheet (debt-to-equity ~0.07; ROE ~20%). Offsetting this strength are a steep revenue decline (~23% in FY2026) and still-weak cash conversion (operating cash flow under half of net income), which raises questions about sustainability and earnings quality.

Income Statement

58Neutral

Balance Sheet

78Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	831.87M	857.38M	825.57M	794.86M	624.80M	911.85M
Gross Profit	223.77M	179.65M	139.22M	225.13M	126.02M	-79.11M
EBITDA	133.97M	270.09M	58.22M	41.73M	-291.68M	-134.50M
Net Income	132.12M	245.84M	-99.67M	-195.92M	-209.00M	-193.13M
Balance Sheet
Total Assets	0	1.48B	1.24B	904.45M	1.10B	1.96B
Cash, Cash Equivalents and Short-Term Investments	66.73M	75.49M	12.48M	1.25M	232.00K	26.05M
Total Debt	0	85.17M	75.83M	56.42M	65.12M	252.59M
Total Liabilities	-1.23B	255.17M	255.90M	248.60M	356.44M	615.91M
Stockholders Equity	1.23B	1.23B	981.04M	655.85M	739.53M	874.90M
Cash Flow
Free Cash Flow	-3.84M	50.87M	-971.00K	-101.20M	-149.58M	-650.53M
Operating Cash Flow	3.19M	85.92M	17.62M	-96.81M	-144.91M	-374.41M
Investing Cash Flow	-1.03M	-29.82M	-460.41M	1.82M	4.95M	-249.09M
Financing Cash Flow	-2.30M	9.34M	441.96M	96.01M	114.14M	640.71M

Brooks Laboratories Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price60.85

Price Trends

50DMA62.63Negative

100DMA64.87Negative

200DMA63.70Negative

Market Momentum

MACD-0.41Positive

RSI47.55Neutral

STOCH32.38Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BROOKS, the sentiment is Negative. The current price of 60.85 is below the 20-day moving average (MA) of 62.76, below the 50-day MA of 62.63, and below the 200-day MA of 63.70, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 32.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BROOKS.

Brooks Laboratories Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:BROOKS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PAR	73Outperform	INR 1.41B	9.73	―	―	9.40%	34.12%
IN:BROOKS	63Neutral	INR 1.79B	13.49	―	―	-7.71%	927.75%
IN:BALPHARMA	58Neutral	INR 1.29B	18.03	―	1.47%	13.51%	-14.80%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ALPA	54Neutral	INR 1.05B	29.99	―	―	0.46%	-83.31%
IN:AAREYDRUGS	52Neutral	INR 2.98B	72.28	―	―	-7.69%	-0.35%
IN:NECLIFE	44Neutral	INR 2.00B	-0.90	―	―	-99.53%	-41.93%

* General Sector Average

Performance Comparison

IN:BROOKS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:BROOKS	Brooks Laboratories Limited	60.85	-50.45	-45.33%
IN:AAREYDRUGS	Aarey Drugs & Pharmaceuticals Ltd.	105.25	9.00	9.35%
IN:ALPA	Alpa Laboratories Limited	49.80	-40.82	-45.05%
IN:BALPHARMA	Bal Pharma Limited	81.20	0.52	0.64%
IN:NECLIFE	Nectar Lifesciences Ltd.	10.29	-4.61	-30.94%
IN:PAR	Par Drugs and Chemicals Limited	114.67	12.95	12.73%

Brooks Laboratories Limited Corporate Events

Brooks Laboratories Denies Role in Share Price Surge, Cites Full Compliance

Oct 13, 2026

Brooks Laboratories Limited has clarified that it has fully complied with all material disclosure requirements under Indian securities regulations, asserting that any information affecting its operations or performance has been promptly communicated...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 09, 2026

Brooks Laboratories Limited AI Stock Analysis