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Last Updated : Jan 12, 2013 05:28 PM IST | Source: Moneycontrol.com

Buy Caplin Point Labs; target Rs 100: Firstcall Research

Firstcall Research is bullish on Caplin Point Laboratories and has recommended buy rating on the stock with a target price of Rs 100 in its January 09, 2013 research report.

 
 
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Firstcall Research is bullish on Caplin Point Laboratories and has recommended buy rating on the stock with a target price of Rs 100 in its January 09, 2013 research report.


"Caplin Point Laboratories manufactures a wide range of Ointments, Creams and other External application preparations in addition to the regular segments of pharmaceutical formulations. During the quarter, the robust growth of Net Profit is increased by 345.72% to Rs. 54.69 million. The Net Sales of the company for the quarter rose 40.90% to Rs.301.07 million from Rs.213.68 million, when compared with the prior year period. Caplin Point recommended a dividend of Rs.2/- per Equity Share of Rs.10 each [20%] for the year ended June 30, 2012. Caplin Point has over 1500 products registered in various countries and further registrations are on the way. The ERP implementation covering all the processes in all locations are in the final stages and is hoped that this will go live from January 2013. Caplin Point will be starting up operations in the fully regulated markets of Europe, USA, Mexico and Brazil in mid-2013. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 28% over 2011 to 2014E respectively.


The company’s net profit jumps to Rs.54.69 million against Rs.12.27 million in the corresponding quarter ending of previous year, an increase of 345.72%. Revenue for the quarter rose 40.90% to Rs.301.07 million from Rs.213.68 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.3.62 a share during the quarter, registering 345.72% increase over previous year period. Profit before interest, depreciation and tax is Rs.77.46 millions as against Rs.20.88 millions in the corresponding period of the previous year.


At the current market price of Rs.89.60, the stock P/E ratio is at 12.22 x FY13E and 10.01 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.7.33 and Rs.8.95 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 28% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 7.84 x for FY13E and 6.54 x for FY14E. Price to Book Value of the stock is expected to be at 3.00 x and 2.31 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 100 for Medium to Long term investment," says Firstcall Research report.


Public holding more than 90% in Indian cos


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To read the full report click on the attachment



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First Published on Jan 11, 2013 11:20 am
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