Dishman Pharma Sept qtr preview by centrum (Q2FY11)

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Dishman Pharma (Rating – Buy; Target Price – Rs262)
􀂁 We expect 12.4% YoY revenue growth to Rs2.4bn on the basis of new contracts and the launch
of operations at the company’s Chinese facility at Shanghai. However, further recovery (from its
somewhat dismal Q1FY11 performance) is expected from H2FY11, owing to a couple of
contracts cumulatively bringing in over Rs500mn.
􀂁 We expect pressures on the EBIDTA margins owing to the new facility and expect it to come
down by 80bps to 22.1%.
􀂁 We expect the adjusted PAT to grow by 24.7% on a YoY basis to Rs251mn.