This kind of speculation has been rife with Caplin Point for years now. Are the cash flows real, are the sales inflated, why no salary for promotors etc etc. I don’t think anyine has found any concrete evidence of any wrong doong on any front so far, at least mot that I kmow of. In the meanwhile, they have strengthened their core unregulated market business and have successfully set up Caplin Steriles which is now breaking even.
While things are usaually good untill they are not, I find it rather unproductive to try and force fit reasons for the stock price underperformance of the last few years. The truth is that the stock was overvalued in 2017-18 and is probably slightly undervalued right now. Once the market sees the returns from Steriles and the resulting improvement in overall return ratios, a rerating is on the cards. Best to be patient and wait ut out.
Disclosure: invested from 400s and added another chunk in April. About 8% of my portfolio.
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