Over the past ten years, Caplin Point Laboratories, a company that develops and markets a variety of generic formulations, has had a spectacular rise, reaching as high as 2,767%.
According to an estimate by ET Markets, the investment would have increased to Rs 2.7 lakh if an investor had made an initial investment of Rs 10,000 in the company four years before and remained put. Nevertheless, the rise has cooled somewhat recently. For example, the shares increased by just 6% over the last half of a year and are up roughly 12% so far this year.
The company manufactures, develops, and sells a variety of branded and generic formulations, as well as exporting to foreign markets. The company’s products consist of tablets, dry syrups in bottles, soft gels, capsules, suppositories, liquid syrups in bottles, lyophilized vials, prefilled syringes (PFS), ophthalmic droppers, pre-mix bags, topicals, and sachets (liquids and powders).
Mutual Funds Held Slightly More
Additionally, the company produces a variety of lotions, creams, gels, and ointments. Puducherry is home to the production facility, whereas Tamil Nadu is home to the company’s main research & development centers. In addition to the US and Europe, it is present in Southern Africa, Francophone Africa, Latin America (LATAM), and the US.
The promoters own 70.62% of the company, according to the shareholding pattern made accessible by the exchanges, with public shareholders owning the remaining 29.38%. As of the conclusion of the March quarter, mutual funds held slightly more than 1% of the company’s equity among public shareholders, while overseas investors held roughly 3.13%.
Stocks Outperforms Benchmark Indices
The company’s standalone revenue from operations in the March 2024 quarter was Rs 139 crore, down from Rs 144 crore in the corresponding quarter of the previous year. Consolidated profit after tax, or PAT, rose to Rs 86.91 crore in the fourth quarter from Rs 70.77 crore in the corresponding period of the prior year.
Positive momentum is also being indicated by the RSI momentum indicator. Furthermore, our stock often outperforms benchmark indices. These factors lead us to believe that the upward momentum will continue.
Purchasing the stock with a stop loss at 1370 is an option for investors. Possible upward goals are in the 1800–2000 region, according to Mileen Vasudeo, Senior Technical Analyst at Arihant Capital.
