ICICI Direct has given Buy recommendation for Caplin Point Laboratories with a target price of Rs. 1080 in its research report issued on Nov 03, 2021

ICICI Direct’s research report on Caplin Point Laboratories

Caplin derives entire revenues through exports with 92% of revenues from Emerging Markets (LatAm + Africa) where it has an end-to-end business model through last mile logistical solutions for its exclusive distributors. In the US, Caplin has filed 20 ANDAs on its own and with partners with 15 approvals from the USFDA (five with partners) For LatAm markets, it outsources ~40% of products from China, ~20% from Indian vendors and in-house manufacturing of the remaining ~40% Caplin Steriles caters to the rapidly growing demand for injectable products in US and other regulated markets

Outlook

We maintain our BUY rating on the stock due to steady growth from legacy LatAm markets, strong US traction and significant visibility capex We value Caplin at Rs 1080 i.e. 24x P/E on FY23E EPS

 

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