CAPLIPOINT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | CAPLIPOINT | Market Cap | 13,728 Cr. | Current Price | 1,810 ₹ | High / Low | 2,397 ₹ |
| Stock P/E | 39.3 | Book Value | 243 ₹ | Dividend Yield | 0.33 % | ROCE | 28.6 % |
| ROE | 22.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,859 ₹ | DMA 200 | 1,963 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | -0.05 % | PAT Qtr | 103 Cr. | PAT Prev Qtr | 85.9 Cr. |
| RSI | 49.6 | MACD | -33.7 | Volume | 36,985 | Avg Vol 1Wk | 63,250 |
| Low price | 1,551 ₹ | High price | 2,397 ₹ | PEG Ratio | 1.78 | Debt to equity | 0.00 |
| 52w Index | 30.6 % | Qtr Profit Var | -2.98 % | EPS | 46.0 ₹ | Industry PE | 29.0 |
📊 Financials: Caplin Point Laboratories shows strong profitability with ROE at 22% and ROCE at 28.6%, reflecting efficient capital utilization. Debt-to-equity ratio is 0.00, indicating a debt-free balance sheet. Quarterly PAT at 103 Cr is slightly lower than the previous quarter (85.9 Cr), showing a -2.98% variation. EPS of 46.0 ₹ supports earnings visibility, though growth momentum has slowed.
💹 Valuation: Current P/E of 39.3 is significantly higher than the industry average (29.0), suggesting overvaluation. P/B ratio ~7.45 (Price 1,810 ₹ / Book Value 243 ₹) is expensive. PEG ratio of 1.78 indicates stretched valuation relative to growth. Dividend yield of 0.33% is modest, offering limited income support.
🏢 Business Model: Caplin Point operates in the pharmaceutical sector, focusing on niche markets in Latin America, Africa, and emerging economies. Its competitive advantage lies in strong distribution networks, cost-efficient manufacturing, and debt-free operations. The company’s asset-light model enhances profitability.
📈 Entry Zone: Attractive entry closer to 1,650–1,700 ₹, near support levels and below DMA200 (1,963 ₹). RSI at 49.6 indicates neutral momentum, while MACD (-33.7) suggests bearish undertone. Long-term investors should wait for valuation comfort before accumulating.
🔒 Holding Guidance: Strong fundamentals with high ROE/ROCE and debt-free status make it a healthy company. However, current valuations are stretched. Suitable for long-term holding only if accumulated at lower levels.
Positive
- Debt-free balance sheet (Debt-to-equity 0.00).
- Strong ROE (22%) and ROCE (28.6%) indicate efficient capital use.
- Global presence in niche pharmaceutical markets.
- Consistent profitability and strong EPS of 46.0 ₹.
Limitation
- High P/E (39.3) compared to industry average (29.0).
- P/B ratio of 7.45 indicates expensive valuation.
- Quarterly profit variation (-2.98%) shows slowing momentum.
- Low dividend yield (0.33%) offers limited income support.
Company Negative News
- No major negative news reported, but recent quarterly profit decline raises caution.
Company Positive News
- Debt-free operations strengthen financial stability.
- Strong global distribution network in emerging markets.
- Institutional holdings remain stable with slight FII increase (+0.07%).
Industry
- Pharmaceutical sector benefits from global demand for generics and specialty drugs.
- Industry P/E at 29.0 suggests moderate optimism.
- Emerging market opportunities drive growth potential.
Conclusion
✅ Caplin Point Laboratories is financially strong, debt-free, and highly efficient. However, valuations are stretched compared to peers. Long-term investors should consider entry around 1,650–1,700 ₹ for better margin of safety. Suitable for holding with a cautious accumulation strategy.
Would you like me to also prepare a DCF-based intrinsic value estimate so you can compare whether the current price truly reflects its fair value?