Caplin Point Laboratories


#241

Caplin appears again in Forbes Asia top 200 below million dollar list. Third time in a row: http://www.forbes.com/asia200/list/#country:INDIA


(Growth_without Debt) #242

Result declared - http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/745123E9_A78B_4209_8151_0E51B3F6981B_164925.pdf
Share subdivision - Face Value 10 to 2


(tbhavesh) #243

The results are too good and have been topped by a good stock split. Other positives includes filing of fist ANDA in July. One more ANDA lined up for filing in this quater and there are 6 more in the pipeline to be filled up next year.

Disc : Invested since lower levels. No transactions in the last 6 months.


(Growth_without Debt) #244

Any idea…why caplin has not declared annual result. Normally June is their year end. Did they release annual report? Management is too conservative in disclosure.


#245

They changed their annual year from June to March this year. Kindly do some reading before posting questions.


(Deval Khandelwal) #246

Annual report for this year . Pdf available at http://karisma.karvy.com/images/2016/CPL_4408/Caplin%20Point_AR%202015-16.pdf


(gautham1) #247

The first page of report has a list of books and says thank you. it even includes rich dad poor dad.
also, if you see their past annual reports, it was plain till 2014. since last year, it has become very colorful.


(Deval Khandelwal) #248

Yeah and a lot of motivational quotes and it also contains their motivational journey.


(Growth_without Debt) #249

Anybody going to attend AGM?


(Mukesh Tolani) #250

@hnk_so

Yes, I will be attending the AGM.

If anyone wants any specific questions to be asked at the AGM, please send the same.
I can prepare a list of queries.


(Yogesh Sane) #251

@mukesh_gt, thanks for your offer to ask questions at the AGM. the one doubt that’s keeping me raising my stake in this company is their ‘advances from customer’ item on the balance sheet. every year there are similar comments in the AR about how the company receives advances from dealers for products to be delivered in future but to me this sounds too good to be true. What kind of dealers will pay money in advance? Advances are paid only for custom orders where the end product is custom made for the customer and that product cannot be sold to any other customer. Capiln make generic drugs so why pay advance?

There is some discussion about the ‘advance from customer’ in this thread about how this advance from customer is really a workaround for the inability of the company to get import license in LatAm countries and that’s why they work with dealers with import license to import drugs in these countries. Based on this explanation that a fellow VP member provided, these advances from customers are not liabilities but part of equity but will never be recognized as equity. Even this arrangement sounds too good to be true and does not look like business as usual.
There is another company that operates a similar lines of business in the agro-chemicals industry (Sharda Crop-chem) and they have huge receivables.

Please post the question to the management - Why are your dealers pay you advance for delivering generic products in future? Do they pay advance to other foreign companies that sell drugs in these countries?


#252

Thanks Mukesh.

Please help raise following questions for me:

  1. The company is a govt approved star export house and all income of the company are derived through exports. In light of the above information, how the tax on the income is getting calculated , as per my limited information the companies 100% EOU thus ideally their should not be any taxes on the company accounts.So, the taxes paid by the company on income is MAT or some thing else, please part with the information.

  2. In April the Company signed agreements for ANDA with two firms and confirmed that the company has also received the first milestone payment from both the counter parties but no details on total agreement values were declared.

  3. Company want to grow net profit to 243cr by 2022 which is 32% CAGR growth in profits but the guidance is 20-25% sales growth and 20% np margin. These two details dont match up although it is still impressive at 28%.

  4. During Sep 2015 they got approval from Brazil and they said we can expect same sales in next 18-24 months. 12 months later they are saying the same time period.

  5. Can the company start publishing geographical breakup of sales and profits on quarterly basis?

Thanks a lot in advance for the help


(Mukesh Tolani) #253

Notification issued by Caplin : USFDA inspection for sterile injectable plant scheduled for 3rd week of October

Here’s the BSE link :

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/21454333_9794_485F_93BE_B226149A49A7_185354.pdf


(ishandutta2007) #254

Why is this USFDA inspection, my understanding was they don’t sell in USA yet, they sell to central american and african countries?


(tbhavesh) #255

They have filled in their first ANDA…this site inspection is mandatory process for them to process their ANDA…

Disclosure : Holding for a long time.


(ishandutta2007) #256

Passing or failing this ANDA’s sites inspection shouldn’t affect their existing market like most of the pharma sector.


(Growth_without Debt) #257

If anybody attending AGM, please update outcome or discussion had with mgt.


(Mukesh Tolani) #258

Notes from the AGM :

I apologise for the delay in updating the AGM details, as office work kept me tied up.

The AGM was held on 12th Sept, Monday.

I was fortunate to reach there well before time., & thus had an opportunity to speak for around 30-40 minutes with Mr. Vivek, COO., who is the younger son of the Chairman.

Also, post AGM, I had an opportunity to personally interact with the Chairman, Mr. Paarthipan, for the next 2-3 hours.

The notes / observations from the AGM & my communication with the management :

  1. The management has set a financial goal of converting today’s topline into the bottomline, 5 years from now.
    This translates into converting today’s bottomline of Rs. 46 crore to Rs. 238 crore in the next 5 years.
    Looks like an ambitious target. If that happens, it can be quite rewarding for the shareholders.

  2. There is a scheduled USFDA inspection in the coming month for the facility newly built for sterile injectibles.
    This is a pre-approval facility inspection for the ANDA filed by the company.

  3. The company plans to file around 9 ANDA’s in the current year., out of which, 5 will be in the name of Caplin.

  4. The company continues to perform well in the present markets in Latin America., & is also looking to foray into other neighbouring countries with similar regulation pattern.

  5. On the question on the Brazil front, as to what has been the sales component from the approval received from Brazilian FDA., the management replied that it was a facility approval., & the product approval is in process.

  6. The company has actively partnered with Fresenius Kabi as its partner for some of the products, to be marketed in the US. This might also be beneficial towards ANDA filings with the USFDA.

  7. The company has obtained 249 product registrations in various markets in FY 2015-16

  8. The capex for the new plant CP-4, which is being developed for sterile injectibles meant for the regulated markets, has been done from the internal accruals & no debt has been raised for the same.

  9. The Baddi factory in Himachal Pradesh has been closed & the production facility has been shifted to the South. This is done to facilitate easier monitoring of all the facilities., & also, as the tax benefits earlier available in HP are no longer available.

Discl : Invested.


(ajyegnesh) #259

Thanks a ton Mukesh…


(uday) #262

SIR MY MEETING WITH MGMT IS FIXED ON 4 TH OCT .If anyone wants any specific questions to be asked, please send the same.I can prepare a list of queries.

Disclosure : Holding for a long time.