Q4FY21 Result Update - Caplin Point Laboratories - ICICI Direct

Q4FY21 revenues grew 29.5% YoY to Rs. 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 Rs. 86 crore. PAT grew 35.8% YoY to Rs. 66 crore due to lower other income. On a full year basis, revenues, EBITDA and PAT grew 23%, 26% and 13%, respectively.

Valuation & Outlook

Caplin posted strong Q4FY21 and FY21 results. After scripting a unique story by growing in uncharted territories, it is looking at growth in known markets. These new markets of South America and the US are a big opportunity but fraught with new challenges. That said, we continue to believe in Caplin's capability to replicate the success story in new markets. Secondly, despite likely dent in margins, return ratios due to investment phase in new markets, these prints continue to demonstrate earnings, balance sheet strength. By thriving in lesser known CA markets and cracking the most difficult US generic pharma code of injectables, that too in different therapies, the company has created its own identity with long drawn plans on the back of significant capex lever. Caplin continues to present a compelling risk-reward scenario at current valuations. We maintain BUY rating and arrive at our target price of Rs. 695 (Rs. 605 earlier) based on 15x FY23E EPS of Rs. 46.3.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_CaplinPoint_Q4FY21.pdf

Shares of CAPLIN POINT LABORATORIES LTD. was last trading in BSE at Rs.577.3 as compared to the previous close of Rs. 560.6. The total number of shares traded during the day was 137604 in over 7562 trades.

The stock hit an intraday high of Rs. 584.55 and intraday low of 545.5. The net turnover during the day was Rs. 78140381.

Source : Equity Bulls

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