Disclaimer: Caplin Labs Analysis and recommendation is purely for knowledge purpose and not to consider as any financial advice. Data are collected from various sources and analysed.For testing accuracy paper trading can be done.
Performance Analysis
The Performance of the company has been exceptional through past quarters. The Income from major operations like antibiotics, anti- inflammatory analgesics has been constantly improving. Consistency and the model of operations undertaken by the company is good and the overall business is increasing its value. The Enterprise value has increased many folds from its inception and the constant growth is making this stock more attractive. The Expectations from the next quarter is very high and net sales are expected to cross 95' mark. Profit is also expected to increase. Last quarter there was an abnormal increase in Employee cost and this time it is expected to remain little lower.
Overall the March quarter will be good for the stock.
The YOY analysis is also pointing to a great year for the stock. Management has good vision and latest operations and the achievements from foreign markets is also good for the stock. The company has increased its presence over globally and are doing pretty good comparing to other pharmaceutical giants.
The P/E ratio of company is high from the industry ratio but the Caplin has delivered good performance and it does not make the stock overvalued. Apart from that the stock is having good fundamentals and are waiting for results.
Revenues from antibiotics is expected to increase. The key sources of revenue like Latin American countries are still strong point. Since the company is positioned itself as create value through self funding, and it is debt free makes it more attractive. the Promoter's stake has increased and the valuations are positive for the stock.
The stock is currently trading at 380 range and are expected to reach 450 to 500 in long term. I see 420 as a reasonable target in short term. The US FDA approval can boost the company and can cause increase in ROE.
Technical Analysis:
The stock is technically strong and a strong support is seen at 375 levels. Immediate resistance is 420 and breaking those levels can make this stock reach 52w High. Investors will be keen to see the results of this quarter. The Overall sentiment to stock is positive. The RSI, MACD and other major technical indicators are showing positive signs for stock.
HOUSE VIEW:
The results are expected to be positive and one of major driving forces of the stock in this quarter. key Economic reforms and US FDA Approval are expected to be positive for the company. Current global as well as domestic business is going good for the company.
So We can expect better returns from this stock in near future. Caplin Is expected to touch 420 and 500, by 2017 end.
Company Information:
Caplin Point Laboratories Ltd. manufactures a wide range of Ointments, Creams and other External applications. The company also has a facility for liquid injectables, ophthalmic drugs and lyophilized bio-tech products. Started in the year 1990, Caplin Point Laboratories Ltd. is based in Chennai. It is one of the fastest growing pharmaceutical company in India. The company is aiming to enter new markets and have already achieved 2000 product licenses across the globe and are awaiting US FDA approval. Caplin Point is able to generate adequate revenue and cash flow to remain debt-free with benchmark receivables, and also continue to invest in state of the art manufacturing facilities from internal accruals. One of the main reasons for the success can be attributed to the wide range of products offered across diverse geographies.
Overview:
Market Cap: 2926 crore
ISIN: INE475E01026
52WK HIGH (RS.) :460
52WK LOW (RS.) 184
EPS (RS.) :6.06
Regd Office: Chennai, Tamil nadu
MD: Dr. Sridhar Ganeshan.
Shareholding Pattern:
Performance Analysis
The Performance of the company has been exceptional through past quarters. The Income from major operations like antibiotics, anti- inflammatory analgesics has been constantly improving. Consistency and the model of operations undertaken by the company is good and the overall business is increasing its value. The Enterprise value has increased many folds from its inception and the constant growth is making this stock more attractive. The Expectations from the next quarter is very high and net sales are expected to cross 95' mark. Profit is also expected to increase. Last quarter there was an abnormal increase in Employee cost and this time it is expected to remain little lower.
Overall the March quarter will be good for the stock.
The P/E ratio of company is high from the industry ratio but the Caplin has delivered good performance and it does not make the stock overvalued. Apart from that the stock is having good fundamentals and are waiting for results.
The stock is currently trading at 380 range and are expected to reach 450 to 500 in long term. I see 420 as a reasonable target in short term. The US FDA approval can boost the company and can cause increase in ROE.
Technical Analysis:
HOUSE VIEW:
The results are expected to be positive and one of major driving forces of the stock in this quarter. key Economic reforms and US FDA Approval are expected to be positive for the company. Current global as well as domestic business is going good for the company.
So We can expect better returns from this stock in near future. Caplin Is expected to touch 420 and 500, by 2017 end.
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