Caplin Point Surges on Strong Q1FY24 Results, Achieves 52-Week High

On Tuesday, Caplin Point Laboratories Ltd shares rose over 11% after the company reported robust results for the June quarter. The company’s net sales increased by 14.14% to Rs 395.32 crore in Q1FY24 as compared to Rs 346.33 crore in the same quarter the previous year. PBIDT, excluding other income, increased by 23.83% to Rs 126.53 crore as compared to Rs 102.18 crore in the same quarter the previous year. 

The net profit of the company increased by 20.67% to Rs 104.15 crore as compared to Rs 86.31 crore in the same quarter last year and sequentially rose by 2.96%. The net profit margin increased by 143 Bps points YoY and 36 Bps points QoQ and stood at 26.35%. The PBIDT excluding other income margins increased by 17 Bps QoQ and 251 Bps YoY and stood at 32.01 per cent.  

The company is having healthy order book and anticipates revenue growth of 40% to 50% in FY24. Targeted revenue growth comes from new product releases and increased market share from existing goods. With an increasing focus on Latin America and Francophone Africa, Caplin’s core business is anticipated to expand faster than the industry average, with margins likely to rise. 

In the meanwhile, Caplin intends to penetrate additional regulated areas in the short to medium term, including Canada, Australia, China, Russia/CIS, as well as the larger LATAM markets of Mexico and Brazil. For the investment projects, Caplin has allotted a Capex budget of around Rs 500–550 crore. With the planned Capex, it will be possible to expand the product line, increase manufacturing capacity, and achieve backward integration for most of the items. According to the company, the Capex would only be financed by internal accruals, and the procedure will keep the company’s net cash positive. 

At present, the share of Caplin Point is trading at Rs 990, down by 6.05 points or 0.61% from its previous closing of Rs 996.05 on the BSE. The scrip opened at Rs 999.90 and has touched a high and low of Rs 1,000 and Rs 980, respectively. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.