Caplin Point Laboratories:Buzzing stock

Caplin Point Laboratories was started in the year 1990 as a Private Limited Company mainly to manufacture a wide range of ointments, creams and other external applications in addition to the regular segments of pharmaceutical formulations. In 1994, Caplin Point was converted into a Public Limited company. The entire proceeds of the public issue were deployed in the manufacturing facility and then translated into a state of the art factory at Pondicherry spanning 51,000 sq. ft.

With the merger of May (India) Laboratories Pvt Ltd, Chennai in 2006 with Malind Laboratories Pvt Ltd, and Baddi in 2009, Caplin Point  substantially increased its production capacity to cope up with the growing demands of the markets. Caplin Point is one of the early entrants in India in the area of Biotechnology. Caplin Point has already started constructing its latest and largest project, a facility that would be in compliance with US FDA, UK MHRA, and other regulatory bodies for multiple dosage forms such as liquid injectables, ophthalmic drugs and lyophilized bio-tech products.

Caplin Point is focusing on expanding into South America, and increase its presence in brand marketing in West Africa apart from  exploring the possibility of start - up operations in CIS and Eastern European markets. Caplin Point will be starting up operations in the fully regulated markets of Europe, USA, Mexico and Brazil as per the information published on company website.

Caplin Point has given 155 percent returns on YTD basis. On a one year basis the stock has delivered 272 percent returns. On a three years basis the stock has delivered an extraordinary annualized returns of 237 percent. The company has shown steady improvement in its margins and  has maintained a decent growth trajectory over a 5 year period.

The stock is trading at discount to its peer Shilpa Medicare. Caplin Point Laboratories is trading at a PE of 42.34 compared to a PE of 47.24 for Shilpa Medicare. Suven Lifescience another peer company to Caplin Point is trading at a PE of 27.49. Investors are well advised to scrutinize this counter for addition in portfolio.