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).
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