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Caplin Point Laboratories Ltd (Pharmaceuticals) – Very Good Buy for Long Term Investment

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Caplin Point Laboratories Ltd. is a very good buy for long-term investment perspective.As on 8th March 2018, it’s traded at approx. Rs.600 and 83% of  Moneycontrol users recommend buying Caplin Labs. at the current price. It’s 5 Years and 3 years Return on Equity is 50.89% and 51.81% respectively as per Screener.

In layman’s terms if one had invested Rs.10000 before 5 years then it has grown to Rs. 80000 i.e. 8 times of the investment.

Pros and Cons as per Screener are as follow:

Pros:
– Company has reduced debt.
– Company is virtually debt free.
– Company is expected to give good quarter
– Company has good consistent profit growth of 64.49% over 5 years
– Company has a good return on equity (ROE) track record: 3 Years ROE 51.81%

Cons:
– The stock is trading at 13.78 times its book value

Caplin Point was established in 1990 to manufacture a range of ointments, creams, and other external applications.

The Company was listed in 1994 following its IPO which was oversubscribed 117 times, the proceeds of which were deployed in setting up a manufacturing facility at Pondicherry. Thereafter, the Company expanded its product range and increased its production capacity.

The Company focused on the emerging markets of Latin America, Caribbean, Francophone and Southern Africa and is today one of the leading suppliers of Pharmaceuticals in these regions, with over 2000 product licenses across the globe.

The Company is entering into the Regulated Markets for Injectables through its state of the art manufacturing plant, capable of handling Liquid Injectables in Vials, Ampoules, Lyophilized Vials and Ophthalmic dosages. The facility is approved by US FDA, EU-GMP, ANVISA-Brazil and INVIMA-Colombia.

Ref:

  1. http://www.caplinpoint.net/
  2. Screener.in
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