Caplin’s aim is “The top line of FY 2021-22 will be the bottom line of
FY 2027-28”. Top line for Fy22 was Rs. 1,300Cr.
Assuming the company achieves the above, and assuming a P/E of 20, the market cap could cross Rs 25,000Cr. Thats over 4x from current levels.
Most companies in Pharma sector which have healthy return ratios, are debt free, healthy free cash flow generation trade at higher valuation. Caplin has a potential to give 4-5 times returns in the next 6-7 years. Thats an interesting opportunity.
What am I missing?
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