Caplin Point Laboratories Ltd. share price target

CAPLIPOINT has transformed itself into a player in generic formulations with a
differentiated geographical presence. The company focuses on the emerging
markets of LATAM and has taken an early-mover advantage in these largely
untapped markets

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...

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...

Q4FY21 revenues grew 29.5% YoY to | 279 crore. EBITDA margins improved 575 bps YoY to 30.7% due to lower gross margins in the base year due to certain one-offs. Subsequently, EBITDA grew 59.3% YoY to | 86 crore. PAT grew 35.8% YoY to | 66 crore due to lower other income. On a...

The Q3FY21 operational performance was mostly in line with our expectations whereas profitability was below due to lower than expected other income. Revenues grew 20.2% YoY to | 274 crore. EBITDA margins improved 89 bps YoY to 30.6% due to higher gross margins, lower other expenses partly offset by higher staff costs likely due to acquired subsidiaries. Hence, EBITDA grew 23.9% YoY to | 84 crore. However, PAT...

Caplin Point Laboratories Ltd (CPLL) has a dominant presence in semi-regulated generic markets of Latin America (LatAm) and Africa. It forayed into these geographies in the 2000s and established a strong and deep network and monetized the early mover advantage in the then untapped markets.

Emerging markets (EM) account for 92% of revenues and consist of LatAm - 87% (both Central, South America) and Africa- 5%. Revenues grew at 25% CAGR over a decade mainly due to 1) early mover advantage in these untapped markets, 2) geographical expansion (starting with two countries to 10 currently), 3) ability to address market gaps, especially in generics space (via trading model) with a hold on end-to-end distribution channels. We expect growth momentum to persist mainly due to further expansion in front end, increasing product basket, change in product mix, launching of own...

Quick Research Note

Q1FY21 revenues grew a robust 24.7% YoY to | 240.1 crore. EBITDA margins fell 517 bps YoY to 29.8% due to higher operational costs. Sequential margin improvement (up 483 bps) was on account of better gross margins (one-off impact in Q4FY20) despite higher staff costs due to recently acquired subsidiaries. Subsequently, EBITDA grew 6.3% YoY, 33.1% QoQ to | 71.6 crore. PAT grew 8.6% YoY to | 54.5 crore. Delta vis-a-vis EBITDA...