Given the concerns wrt Caplin’s accounting hygiene I have decided to exit it. We as investors always need to find the best use for our capital. Despite investors’ attempt to let management explain glaring inconsistencies in the accounting, they did not. The auditors compensation has gone up more steeply than the sales in the same period. These could simply be coincidences with some very innocent explanation. But when investing in a small cap company (4k cr) we have to be “better safe than sorry”.
There are a few other portfolio updates too that i will post soon. Major update is that i intend to redeploy majority of caplin capital into Alembic Pharma (which is trading at a similar valuation, but has much better management integrity, better growth visibility, better business model as well imo).
Will post a more holistic update soon.