Buy Dishman Pharma, target Rs 221: Reliance Money

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Buy Dishman Pharma, target Rs 221: Reliance Money

Posted on: May 28th, 2009 and is filed under Brokerage Recommendations.

Reliance Money has maintained its buy rating on Dishman Pharmaceuticals & Chemicals with target of Rs 221 in its May 28, 2009 research report.

“Dishman Pharmaceuticals & Chemicals Ltd (Dishman) reported better than expected financials with impressive 32% revenue growth (to Rs 10.62 billion) and 21% profit growth (to Rs 1.46 billion) in its consolidated financials during FY09. The revenue growth was contributed by robust (i.e 30%) growth in the CRAMS revenues and partly due to incremental revenue flow (i.e about Rs 255 million) from acquired VitaminD business of Solvay.”

“Given a stronger operational and financial performance in FY09 and future outlook, we maintain our positive stance and maintain our estimate. At the CMP of Rs 185 (the stock has already appreciated by 91% from our earlier call dated 6th April 09 at Rs 97 and achieved our TP of Rs 185), Dishman currently trades at 6x it FY11 EPS and 5x its FY11 EV/EBITDA. Looking at the steady revenue growth with better profitability, we maintain our ‘BUY’ rating on Dishman with the revised target price of Rs 221,” says Reliance Money’s research report.

source: Moneycontrol

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