CAPLIPOINT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Caplin Point Laboratories Ltd (CAPLIPOINT), a mid-cap pharma company with strong export-driven growth and zero debt. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹46.4 — solid earnings base

PAT Qtr: ₹85.9 Cr vs ₹86.5 Cr — flat QoQ, but +18.4% YoY

ROE: 22.0%, ROCE: 28.6% — excellent capital efficiency

Debt-to-equity: 0.00 — debt-free, strong balance sheet

Dividend & Cash Flow

Dividend Yield: 0.26% — modest, reinvestment-focused

Strong operating cash flows support R&D and international expansion

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 49.8 Overvalued vs industry PE of 33.4

P/B Ratio ~10.3 Premium to book value

PEG Ratio 2.27 Overvalued relative to earnings growth

Intrinsic Value ~₹2,150–₹2,200 Trading slightly above fair value

Valuation is stretched, but supported by consistent earnings and zero debt.

💊 Business Model & Competitive Edge

Industry: Pharmaceuticals — high-margin, export-driven

Moat

Strong presence in Latin America, Africa, and Southeast Asia

Wide product portfolio: injectables, tablets, ophthalmics, prefilled syringes

USFDA approvals for Caplin Steriles — expanding U.S. footprint

Catalysts

Acquisition of Mexican firm Triwin Pharma to deepen LATAM presence

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USFDA approval for Milrinone Lactate and Haloperidol Decanoate injectables

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5-year EPS CAGR of 22% and revenue CAGR of 13%

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Caplin Point is a durable compounder with a lean cost structure and global expansion strategy.

📉 Technical & Entry Zone

Current Price: ₹2,315

DMA 50/200: Trading above both — bullish trend

MACD: +51.6 — strong momentum

RSI: 66.0 — nearing overbought zone

📌 Suggested Entry Zone: ₹2,150–₹2,200

This range aligns with intrinsic value and technical support. Accumulate on dips for long-term exposure.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to global generics and injectables

Buy on dips near ₹2,200 if bullish on export growth and regulatory tailwinds

2026 Target Price: ₹2,508 based on analyst consensus

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2030 Forecast: ₹3,400+ if U.S. and LATAM expansion scales as projected

⭐ Fundamental Rating

4.2

1

stockanalysis.com

2

simplywall.st

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trendlyne.com

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