Let us start this new year with a prayer for a good 2014 .Last year SEBI play the spoilsport by the introduction of Periodic Call Auction .This time,by god’s grace ,they realized the drawbacks of this mechanism and already declared many relaxations which is expected to bring lot of relief to small and mid cap investors going forward .
On the financial front ,company is growing steadily in past few years .Its top line improved from Rs.60 Cr to Rs.122 Cr and net profit galloped from Rs.3 Cr to 14 Cr in last four years.Management of company rewarding share holders proportionately in these years which distributed a dividend of 25 % in latest financial year. Company is now going through a massive capacity expansion program .As part of this ,company is in the process of setting up a state of the art injectable plant which will cater to highly regulated markets like USA , EU ..etc .It started construction in 2012 and and planning to complete it in three phases .First phase of this plant is expected to start trial run in this month itself .This facility is mainly for sterile injectables and prefilled syringes .There is severe shortage for sterile injectable facilities across the world and big MNC’ pharma players are in a hunt for acquiring quality assets in this segment.Mylan’s recent buyout of Agila division of Strides Arcolab at a whopping valuation is an indication for the premium valuation for Sterile injectable facilities worldwide . Pre-filled syringes is relatively a new concept which is gaining acceptance and potential is very high. Company claiming they have already entered in some agreements with Brazil based firms to distribute products from this facility . This may be a temporary arrangement till the company get the permissions of USFDA and UKMHRA for this facility .Caplin point also expanding its existing manufacturing unit at Puducherry by adding facilities to produce Suppositories, Soft gelatin capsule and Penems.This is also expected to to start production in the second half of this FY. Company already recorded a sales of Rs.40 cr and a net profit of Rs.4 Cr in the first quarter ended in September ( Company's year ends in June ) ,this figure is even after deducting a forex loss of Rs.4.6 cr.
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Stock listed only in BSE with code 524742
Disc : It is safe to assume that I have vested interest in CPL