₹10,000-2.7L in 10 years: This stock can supercharge your portfolio
Caplin Point Laboratories, a company specializing in the development and marketing of generic formulations, has seen a remarkable 2,767% increase in its stock value over the past 10 years. According to an analysis by ET Markets, a ₹10,000 investment in the company's stock a decade ago would now be valued at ₹2.7 lakh. However, recent growth has been more modest, with shares rising only 6% in the last six months and approximately 12% year-to-date.
Take a look at company's extensive product portfolio
Caplin Point Laboratories produces, develops, and markets a range of generic formulations and products including tablets, dry syrups, soft gels, capsules, suppositories, and more. The company also produces a variety of ointments, gels, creams, and lotions. Its primary research and development facilities are situated in Tamil Nadu, while its manufacturing facility is located in Puducherry.
Global reach and ownership structure
Caplin Point Laboratories exports to overseas markets as well. It has a substantial presence in Latin America, Southern Africa, Francophone Africa, the US, and Europe. The shareholding pattern of the company shows that it is predominantly owned by promoters at 70.62%, with the remaining 29.38% owned by public shareholders. Among these public shareholders, mutual funds hold just over 1% of the company's shares, while foreign investors own approximately 3.13%.
Caplin Point Laboratories' Q4 financial performance
In the March 2024 quarter, Caplin Point Laboratories reported a decrease in standalone revenue from operations to ₹139 crore, compared to ₹144 crore during the same quarter of the previous year. However, consolidated profit after tax (PAT) increased to ₹86.91 crore in Q4 from ₹70.77 crore in the previous year, indicating a positive financial performance despite lower revenues.
Positive outlook for the multibagger pharma stock
Technical analysis suggests a positive outlook for Caplin Point Laboratories' stock. Mileen Vasudeo, Sr Technical Analyst at Arihant Capital, stated, "The stock has given a breakout from lateral consolidation earlier this month, accompanied by strong volumes on the daily chart." He further noted that the momentum indicator RSI is also indicating positive momentum and anticipates continued upward movement. Investors may consider buying the stock with a stop loss at ₹1,370 and potential upside targets range between ₹1,800 to ₹2,000 levels.
