Accumulate Caplin Point; target of Rs 896: Hem Securities

Hem Securities report on Caplin Point

Total Revenue stood at Rs 312.02 Cr for Q2FY22, registering a growth of 15.6% over Q2FY21. PAT increased by 22.3% to Rs. 76.82 Cr in Q2FY22. Gross Margins improved by 345bps to 58.6% in Q2FY22. Free Cash Flow stood at Rs. 103 Cr for H1FY22. Company receives approval from Brazil’s ANVISA for injectable plant through mutual recognition of US FDA EIR. CRO wing Amaris Clinical completes back-to-back virtual and physical USFDA audits, both with NIL observation.

Outlook

We expect company to deliver topline growth of 20% over next few years. We recommend to ACCUMULATE the stock with price target of Rs. 896.

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