Waya initiates coverage on Caplin Point Laboratories Ltd. with a BUY recommendation. Waya expects an upside of 33% in 1 year and sets a target price of ₹2,613 for this stock.

Caplin Point is a specialty pharmaceutical company supplying high-quality medicines to the US, Latin America, India and other emerging markets. Through its subsidiary Caplin Steriles, the company focuses on complex injectables and eye-care products and has 42 USFDA-approved products. It also sells branded generics across 36 therapeutic areas in markets like Brazil, Mexico and Central America.

Caplin Point has strong financials with revenue of ₹1,098 crore in H1 FY26 (+11.9% YoY) and profit of ₹311 crore (+21.6% YoY). The company operates at very high margins - 38% EBITDA and 28% PAT - which are among the best in the pharma industry. It is also debt-free and holds ₹1,334 crore cash, giving it exceptional financial strength. The US business grew 27% YoY and is becoming a major growth engine for the company.

Waya believes Caplin Point is well-placed for long-term growth, with revenue expected to rise from ₹2,040 crore in FY25 to over ₹3,150 crore by FY28E. Growth will be driven by new injectable launches in the US, recently acquired products, strong cash generation, and its backward-integration strategy that improves margins and reduces costs.