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Buy Caplin Point Laboratories; target of Rs 670: ICICI Direct

ICICI Direct is bullish on Caplin Point Laboratories has recommended buy rating on the stock with a target price of Rs 670 in its research report dated August 12, 2020.

August 13, 2020 / 02:57 PM IST
 
 
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ICICI Direct's research report on Caplin Point Laboratories

Q1FY21 revenues grew a robust 24.7% YoY to Rs 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 Rs 71.6 crore. PAT grew 8.6% YoY to Rs 54.5 crore. Delta vis-a-vis EBITDA was due to higher other income and lower tax rate.


Outlook

The company continues to offer a compelling risk-reward scenario at current valuations. We maintain BUY rating and arrive at our target price of Rs 670 (15x FY22E EPS of Rs 44.6).

For all recommendations report, click here

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Broker Research
first published: Aug 13, 2020 02:57 pm

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