Caplin Point Labs – Multibagger Analysis

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BSE Code: 524742


About Company

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.

Bull Factors

Consistent 33% Compounded Growth in Sales & Profits, this is really Awesome and it proves the Credibility of their Research & Sales capacity.

Innovative Products clocking around 500 and contributes to New products developments, Developments NSAIDs , Anti-Depressants, Anti-emetic, Anti- Coagulants, etc

Technological Improvements, R&D enhancement, QC support in analytical methods, Proper Adherence to Regulator requirements, Data Mining in Retail should enhance Increased Sales & Profit Efficiency.

Almost Zero Debt company, Less Interest paid, thus More Safer Investment.  Higher Capital Employed usage in 2017 is a remarkable factor.

Increase in Promoter Holdings, Shows good Sign of Confidence in Company & Future. Additionally, the high amount of Promoter Holding supports Increase in Price during good times.

Expansion into New Markets including Latin America, GDP growth in World, 17% Pharmaceuticals Market Growth in China ensures the 33%Growth will be Real in next 5 Years.

High Growth, OP, NP, ROE valuation parameters.

Traded at Discount currently, which is another Boon of Market Crash.  I see the Downside risk is limited.

Risk Factors

High in Book Value Ratio, which is usually a Curse of the High Growth companies.

Already a Multibagger of Past.

Generic Drug, Technology competition from Peers pose threat on revenue & PAT.

Currency Fluctuation risk.

Geographical Risk due to Excess exposure to Latin America regions.


P&L shows progress in Income & Profit


Balance Sheet shows displays Capital Employed increased 59%, Net Worth increased 62%.


Cash Flow Statement shows free Operating cash flow.


Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes image
Durable Competitive Advantage Yes image
Future Growth Drivers Moderate. image
Conservative Debt (long term debt < 3 Net Profit) Yes image
Debt Equity Ratio, Current Ratio DER is Zero, Current Ratio is High. image
Return on Equity must be Above Average Yes image
Low CAPEX required to maintain current operations Moderate image
Management is holding / buying the stock Yes image
Price is Under Valued (< intrinsic value) Yes image
Stock Price is consolidating (now) Yes image
Stock Price is growing in past years along with EPS growth Yes image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio PB is high image
Cash Flow Positive, Net Profit % greater than 8% Yes image
Paying Dividends, Tax Yes image
EPS Growth Rate Good image
Jump in Trailing Result EPS Yes image
Jump in Quarterly Result EPS Yes image
Expected Gain in 5 Years 5X image
Price Movement Graph, 52 Week High & Low Yes image
Volume Analysis Good image
Power of Brand Yes image
Corporate Governance, Reputation of Leaders Promoters selling holdings is an Issue in Past. image
Fraud reported Not in current search image
Annual Report Good image


Based on the Value & Growth parameters, the company hold Multibagger properties.


Note Free Multibaggers will not be tracked & Hence no follow-ups will be provided.


Futurecaps is an independent equity research Company. Use of the information herein is at Investor’s own risk. This is not an offer to sell or solicitation to buy any securities and Futurecaps will not be liable for any losses incurred for the investment based on the advise.  The report is purposefully kept concise.  The Investor is advised to do due diligence in the scrip mentioned.  None of Futurecaps Advisors hold 1% above Holdings of this company.

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