Caplin Point Laboratories Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹2,305.70+₹3.90 (+0.17%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Caplin Point Laboratories Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Caplin Point Laboratories Limited, together with its subsidiaries, engages in the development, production, marketing, and export of generic formulations and branded products in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees4,199

Annual revenue₹2,171 Cr

How does it make money?

Turns over ₹2,171 Cr a year. Of every ₹100 of sales, about ₹30 reaches shareholders as profit, with ₹40 left at the operating level before interest, tax and depreciation. Each of its 4,199 employees supports ₹51.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹51.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.9% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.5%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 13.0% and earnings to grow about 15.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.0%

Est. earnings growth+15.8%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +49% while net margin moved +14% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+49%

Margin effect+14%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 26.4x already prices in growth
• P/E is close to its own historical median of 29.9x

Quality vs. Valuation

Company Quality

84/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

63/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.4x

3Y Median

29.9x

40 monthly readings · mean 29.6x · range 20.9x–41.7x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 3y median of 29.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 21% below the peer median of 33.3x.

vs. its own history

Fair

29.9x median over 40 months · -12%

vs. sector peers

Cheap

33.3x median of 4 peers · -21%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.6x

PEG

1.36

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 34.1% to 39.7% over 3 years.
Debt is being paid down
Total debt is down 16% over 3 years.
Cash generation is improving
Free cash flow is up 253% over 3 years.
High return on capital employed
ROCE of 22.0% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 110% against revenue up 49% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 34.1% to 39.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 16% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 21% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹275 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 110% against revenue up 49%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.3% CAGR
Latest reported year was 19.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 38%✓ 39.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹275 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

12 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹17,526 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.4x

Fair

Fairly valued against the generic band

P/B Ratio

4.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹87.28

Profitable

Profitable on a per-share basis

ROE

17.9%

Strong

Strong capital efficiency

ROCE

22.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

19.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

15.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.35%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹275 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

20.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

31.4%

Good

Healthy core-business profitability

Net Margin

29.1%

Good

Strong bottom-line conversion

Current Ratio

6.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

54%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2619.5 / 2614.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

13.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,454 Cr	₹1,680 Cr	₹1,921 Cr	₹2,171 Cr	+14.3%
EBITDA	₹496 Cr	₹619 Cr	₹742 Cr	₹862 Cr	+20.2%
EBITDA Margin	34.1%	36.8%	38.6%	39.7%	—
PAT (Net Profit)	₹376 Cr	₹457 Cr	₹536 Cr	₹641 Cr	+19.4%
EPS	₹49.18	₹59.9	₹70.25	₹84.11	+19.6%
ROE	20.0%	19.7%	18.8%	17.9%	—
ROCE	23.5%	23.9%	23.3%	22.0%	—
Total Debt	₹5 Cr	₹2 Cr	₹5 Cr	₹5 Cr	-5.6%
Free Cash Flow	₹78 Cr	₹173 Cr	₹241 Cr	₹275 Cr	+52.3%

🟢 Revenue has grown at 14.3% a year over 3 years.

🟢 EBITDA has grown at 20.2% a year over 3 years.

🟢 EBITDA Margin has risen from 34.1% to 39.7% over 3 years (+5.6 pts).

🟢 PAT (Net Profit) has grown at 19.4% a year over 3 years.

🟢 EPS has grown at 19.6% a year over 3 years.

🔴 ROE has fallen from 20.0% to 17.9% over 3 years (-2.1 pts).

🔴 ROCE has fallen from 23.5% to 22.0% over 3 years (-1.5 pts).

🟢 Total Debt has shrunk at 5.6% a year over 3 years.

🟢 Free Cash Flow has grown at 52.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,045 Cr

Total Liabilities

₹415 Cr

Cash & Equivalents

₹606 Cr

Operating Cash Flow

₹523 Cr

Capex

-₹248 Cr

Shareholding (proxy)

Institutional Holding

5.7%

Insider Holding

73.4%

Corporate Actions

Dividend Rate

₹8

Ex-Dividend Date

18 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,765

+19.9% vs CMP

Target Range

₹2,690 – ₹2,840

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

1 positive2 mixed3 general

Caplin Point Laboratories Share Price Fall and Valuation

Univest, 09 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Caplin Point Laboratories shares falls 2% post 10 observations from USFDA

Moneycontrol.com, 24 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Caplin Point Laboratories Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Caplin Point Laboratories (CAPLIPOINT.NS) Holds Firm Near ₹2,846 as Stock Consolidates Below Resistance - Chart Pattern Alerts

www.siam.in, 27 Sept

Caplin Point Laboratories Limited's (NSE:CAPLIPOINT) Share Price Not Quite Adding Up

Simply Wall Street, 12 Feb

Caplin Point Laboratories consolidated net profit rises 15.78% in the June 2026 quarter

Business Standard, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

MiddlingValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑