Fundamental Analysis

CAPLIN POINT LABORATORIES 

Ticker : 524742
BUY : Rs 352.45
Target : Rs 390

Caplin Point Laboratories is a pharmaceutical company, which manufactures a wide range of ointments, creams and other external application preparations in addition to the regular segments of pharmaceutical formulations. On a quarterly consolidated front, its net sales saw growth of Rs 228.21 crore in Q3FY20, increasing by 43.5 per cent from Rs 159.03 crore in Q3FY19. The operating profit came in at Rs 78.11 crore in Q3FY20, up by 19.25 per cent from Rs 65.50 crore in the same period for the previous fiscal year. The net profit reported by the company was Rs 58.88 crore in Q3FY20, expanding by 28.54 per cent from Rs 45.81 crore in Q3FY19. The new markets of South America and the US can pose opportunities for the company in terms of revenue growth. Owing to the company’s unique business model, leadership position in its key geographies and leverage-free balance sheet with strong free cash flows, we recommend to BUY.