Caplin Point Laboratories Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (13x coverage).
• Dividends after 3 years are expected to be thoroughly covered by earnings (10.6x coverage).
• Dividends per share have been stable in the past 10 years.

Cons

• Caplin Point Laboratories's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Caplin Point Laboratories's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Cash flow for Caplin Point Laboratories is expected to increase by more than 50% in 2 years time.
• Caplin Point Laboratories's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Caplin Point Laboratories's earnings are expected to exceed the low risk growth rate next year.
• Caplin Point Laboratories is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
• Caplin Point Laboratories's revenue growth is expected to exceed the India market average.

Cons

• Caplin Point Laboratories's earnings are expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).
• Caplin Point Laboratories's earnings growth is positive but not above the India market average.
• Caplin Point Laboratories's net income is expected to increase but not above the 50% threshold in 2 years time.
• A decline in Caplin Point Laboratories's performance (ROE) is expected over the next 3 years.
• Caplin Point Laboratories's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Caplin Point Laboratories's revenue is expected to grow by 19.4% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Caplin Point Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Caplin Point Laboratories is profitable, therefore cash runway is not a concern.
• Caplin Point Laboratories is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (11634.1%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 886.7x debt.
• Caplin Point Laboratories's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (2% vs 0.1% today).
• Caplin Point Laboratories earns more interest than it pays, coverage of interest payments is not a concern.
• Caplin Point Laboratories's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Caplin Point Laboratories board of directors is about average.
• Sridhar's remuneration is lower than average for companies of similar size in India.
• Sridhar's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the Caplin Point Laboratories management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

misc

Pros

Cons

• Caplin Point Laboratories is covered by less than 3 analysts.
• Caplin Point Laboratories has significant price volatility in the past 3 months.

past

Pros

• Caplin Point Laboratories has delivered over 20% year on year earnings growth in the past 5 years.
• Caplin Point Laboratories used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
• Caplin Point Laboratories has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• Caplin Point Laboratories's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (33.2% vs 22.7%).

Cons

• Caplin Point Laboratories's 1-year earnings growth is less than its 5-year average (33.2% vs 33.8%)
• Caplin Point Laboratories's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

value

Pros

• Caplin Point Laboratories is good value based on expected growth next year.
• Caplin Point Laboratories is good value based on earnings compared to the IN Pharmaceuticals industry average.
• 524742 outperformed the Market in India which returned -14.5% over the past year.
• BSE:524742 is up 19.4% outperforming the Pharmaceuticals industry which returned 6.8% over the past month.
• BSE:524742 is up 19.4% outperforming the market in India which returned 8% over the past month.

Cons

• Caplin Point Laboratories's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Caplin Point Laboratories's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Caplin Point Laboratories is overvalued based on assets compared to the IN Pharmaceuticals industry average.
• Caplin Point Laboratories is overvalued based on earnings compared to the India market.
• 524742 underperformed the Pharmaceuticals industry which returned 26.7% over the past year.