Dishman Pharma : Gradual Recovery Ahead – Maintain Accumulate :Emkay

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Dishman Pharma

Gradual Recovery Ahead – Maintain Accumulate

ACCUMULATE

CMP: Rs 46                                       Target Price: Rs 53

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n     Q2FY12 revenues at Rs2.7 bn grew by 27% YoY, Adj. EBIDTA at Rs471 mn grew by 174% YoY and APAT at Rs125mn was up 46% YoY

n     Revenue growth was mainly driven by 28% growth in MM business. Improvement in profitability was primarily due to non-cash forex loss of Rs188mn vs. gain of Rs197mn in Q2FY11

n     Going forward, commencement of supplies to Abbott for Teveten & Tricor API, commencement of Vit D plant in next month and ongoing supplies of Gemcitabine from Unit IX are key performance indicators

n     We expect gradual recovery in business with +ve contribution from all the subsidiaries, however mounting debt remains a concern. Maintain Accumulate with a target price of Rs53