Investment Buy Call : Buy Caplin Point @ 330-350, Target-450 (12th-July-2020)

 Buy Caplin Point @ 330-350 Target-450/-

CMP-346/-

Mcap: 2657 Cr

EPS: 28.4

PE: 12.4 ( Attractive/Low)

ROCE : 27.5%

P/BV : 2.8 

Div Yield : 0.7%

FV: 2

Promoters Stake ~ 69% (High, Skin in the game)

Almost Debt Free company 

Caplin Point Laboratories is engaged in the business of pharmaceuticals - producing, developing and marketing wide range of generic formulations and branded products and exporting to overseas market.

• Caplin Point Laboratories is one of the fastest growing mid-cap pharmaceutical companies in India.
•  Company holds over 2800 product licenses across the globe, with a dominant position in Latin America.
•  Topline of the company in 2010 has become the bottom line in 2016.
•  Debt-free business model with benchmark receivables.
•  Company is entering into Regulated markets of US, EU, Brazil, Mexico, Australia, with a state of the art manufacturing facility for Injectables, already approved by EU-GMP, ANVISA and US FDA.
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Pros:

Company is virtually debt free.

Company is expected to give good quarter

Company has good consistent profit growth of 65.81% over 5 years

Company has a good return on equity (ROE) track record: 3 Years ROE 44.34%

Cons:

Debtor days have increased from 68.35 to 89.92 days

Advice:-

investors are advised to consult their professional investment adviser/ consultant/ tax advisor for investment advice in this regard.