Caplin Point surges in trade, here’s why

Caplin Point Laboratories Ltd surging in trade, up 15 percent. Caplin Point has a sterile injectable arm Caplin Steriles and the valuations have been in focus amongst analysts ever since Gland Pharma reported Q1FY22 numbers which were strong.

Caplin Steriles, the injectable arm of Caplin Point, grew 30 percent on a year-on-year (YoY) basis in FY21 despite COVID-19 disruptions. It is in process of starting 2 more injectable lines, so the company is expanding its capacity for Caplin Steriles and is also looking to enter more complex products such as complex injectables and ophthalmology.

Gland Pharma's FY21 trailing P/E indicates a significant discount between the two. Caplin Point houses Caplin Steriles while Gland Pharma is a pure-play injectable firm. Caplin Point is trading at around 28 times versus Gland at over 65 times trailing P/E.