Why is the company not paying the dividend though it is doing consistent profit?
Caplin gives dividend
Yes it does. But the dividend payout is much less for a company whose ROCE>30% and postive cash flow…
Notice of Board Meeting. The details are in the notice.
@atulastra you are invested here for a long time and you also got direct contact with the management.
Any updates which you could share please?
Discl: Exited @676. No holdings now. Looking for an opportunity to re-enter.
I will wait for the outcome of the board meeting.
Edit: Although I talk to the management of the company, they don’t share any non-public information with me. Having said so, they take active interest in resolving my questions which are frequently shared on the forum. To be honest, I like this professionalism.
Outcome of Board Meeting - March 12th 2018
The Board of Directors of the Company at their meeting held today, deliberated the need to identify partner(s) - (technical / marketing / financial) to exploit full potential of the Company including that of liquid injectable facility—CP IV, which is approved by the Food and Drug Administration of United States of America. Further, the Board also deliberated to explore opportunities of acquiring entities which would enhance the value to all the stakeholders of the Company.
The Company’s Chairman, Managing Director, and Chief Operating Officer, have been duly authorized by the Board to explore opportunities and hold discussions with potential partner(s) in this regard.
All the above proposals are subject to Board’s, Statutory and Regulatory approvals, if any, as and when required.
For Caplin Point Laboratories Limited
Source: BSE India
Entering into US markets will invite the regulatory risk of USFDA. We have seen in past 2-3 yrs many quality stocks (Lupin , Sun pharma , IPCA , DIVIS etc) getting severely hammered due to USFDA.
Should we consider this risk while assigning valuation for future growth ? If yes, how much ? How much revenue/profits they are expecting from US in next 3-4 years. Would appreciate if people can share thier views on this.
Disc : Invested
@atulastraji,I am a new boarder in this forum, Going theough Caplin thread and have same question which @Rohitsharma have ,To me till now Caplin does not have any risk from USFDA but as usfda profit is going to include fom fy19 , fear of usfda will be there but it seems as the profit percentage generated from US market will be still less , then it should not be consider as big risk. Please correct if I am wrong. Senior boarders Requesting you to please put your views
Dear Ranjan ji,
The profit contribution from US wont be big initially, if you have read the annual report of the company. They plan to make FY16 top line as bottom line for FY22 ie 240cr bottom line and substantial portion of revenues to come from regulated markets which i assume should not be less than 40%…
We are currently at rs109crs for 9M fy18. Considering the points mentioned above and operational performance of the company, I am hopeful they will be able to achieve this number much before than the actual target of FY22.
Having put up the rozy picture, stock is trading at 20X+ of book value and 10X of annual sales making it fairly expensive stocks even if the PE of the company does not look bad.
Hope above points might help in your investment decisions.
Disc: Vested interest and biased views