LKP ‘Likes’

March 9, 2015 LKP Advisory

Buy TECHNICAL VIEW

Dishman Pharmaceuticals. Target Rs.240
Dishman Pharma is a 1500cr integrated CRAMS outsourcing partner for global
innovator drug companies. Dishman and Carbogen Amcis are the two growth engines
with an objective to generate sustainable EBIDTA margins of 24 percent.

With most of the capex behind, the plan is to use incremental cash flows to retire its
900cr debt commencing with a 100cr repayment this fiscal. Scalability of its HIPO
facility at Bavla and approvals from regulatory authorities should in our view enable
the company to post net profits of 160crs next fiscal as against 130crs expected in
FY15.

Buy Dishman Pharma trading at 8x estimated one year forward earnings for a
price objective of 240 in one year.

BSE / NSE Code 532526 / DISHMAN

Current Market Price (Rs.) 160  Dishman Pharma weekly price chart is forming a double bottom chart pattern. The
BSE Sensex / CNX Nifty 29449 / 8,938 pattern target could be projected to around 240 levels.

Market Cap (Rs crore) 1,279  Also, over the last year this level of 125 was tested twice and at both attempts the
52-Week Range (Rs) 197 / 79 stock managed to recover sharply.

Shareholding Pattern  Even on a short term timeframe, the rising support trendline indicates that the trend
Promoters (%) 61.40 is UP.

FII Holding (%) 12.73 Hence we believe, that the stock could present a decent trading as well as investing
opportunity with a longer term target of 240.
DII Holding (%) 3.74
Public & Others Holding (%) 22.13 Kunal Bothra S. Ranganathan
kunal@lkpsec.com s_ranganathan@lkpsec.com
91 22 6635 1213 91 22 6635 1270

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