Buy Caplin Point Laboratories target of Rs 1000: ICICI Direct

ICICI Direct is bullish on Caplin Point Laboratories has recommended buy rating on the stock with a target price of Rs 1000 in its research report dated August 06, 2022.

Broker Research

August 08, 2022 / 21:52 IST

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ICICI Direct's research report on Caplin Point Laboratories

Caplin derives entire revenues through exports with 90% of revenues from Emerging Markets (LatAm + RoW) where it has an end-to-end business model through last mile logistical solutions for its exclusive distributors. In the US, Caplin has filed 21 ANDAs on its own and through partners, 18 approvals from the USFDA (five with partners) • For LatAm markets, it outsources ~45% of products (China: 30%; Indian vendors:70%) and in-house manufacturing of the remaining ~55% • Caplin Steriles caters to the rapidly growing demand for injectable products in US and other regulated markets.

Outlook

Maintain BUY due to 1) steady growth from legacy LatAm markets and increasing footprints in other geographies, 2) traction from visible order book in US, and 3) calculated capex decisions to expand capacity, widen portfolio and backward integration. Valued at Rs 1000 i.e. 20x P/E on FY24E EPS of Rs 49.9.

For all recommendations report, click here