Dishman Pharma High on Hopes – Maintain Accumulate :Emkay

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Dishman Pharma

High on Hopes – Maintain Accumulate

ACCUMULATE

CMP: Rs89                                        Target Price: Rs125

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n     Q1FY12 was below our expectations with a) Revenues at Rs2.4 bn (up 18% YoY), EBIDTA at Rs448 mn (up 1% YoY) and APAT at Rs107mn (down 37% YoY)

n     Revenue growth was mainly driven by 33% growth in MM business & profit decline was due to increase in interest and depreciation

n     Going forward, commencement of supplies of CVS intermediate to US market, increased sale from Benzathine & commissioning of new Vit-D plant will propel growth & improve EBITDA margins

n     Maintain accumulate rating with target price of Rs125 (13xFY13 earnings of Rs9.6)