Dishman Carbogen Amcis Ltd. News and Updates

Name: Latest research reports of Dishman Carbogen Amcis Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Dishman Carbogen Amcis Ltd.
Rating: 5
Author: HDFC Securities

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Dishman Carbogen Amcis Ltd.

11 Nov 2017

184.79

-1.01%

Dishman Carbogen Amcis (2QFY18): Bexagliflozin! Maintain BUY

Buy: Dishman Carbogen Amcis Ltd.

Target

HDFC Securities

At CMP, DCAL is trading 9.1x FY19 EBITDA and 7.2x FY20E EBITDA, at ~25% discount to the sector average. We value DCAL at 11x EV/EBITDA (Sep-19E) to arrive at a TP of Rs 410. We have changed our valuation methodology (prev. P/E multiple), as the higher amortisation costs post-merger are non-operating and non-cash in nature. Dishman Carbogen (DCAL) bounced back with strong numbers in 2QFY18. Sales from orders deferred in 1QFY18 propelled DCAL to report higher revenues, while resulting operating leverage led to the margin expansion. DCALs flagship potent oncology product, Niraparib, was commercially launched by the partner in the US during the quarter. However, we believe that this is only the beginning!

Dishman Carbogen Amcis Ltd. has lost -24.62% in the last 3 Months

Dishman Carbogen Amcis Ltd.

14 Sep 2017

184.79

-1.01%

Dishman Carbogen Amcis (Initiating Coverage): Highly potent. BUY

Buy: Dishman Carbogen Amcis Ltd.

HDFC Securities

Initiate coverage with a BUY rating and a TP of Rs 405 (20x on Sep-19E EPS), implying ~35%+ upside. With strong visibility on commercial launches and future orders, Dishman Carbogen Amcis (DISH) will finally see its efforts culminating in sustainable growth starting FY18. Seeds that were sown six to seven years ago are now yielding results. Apart from Niraparib, there are three to four potential launches in FY18, which will not only accelerate growth, but also de-risk earnings from blockbuster products. Altogether, there are 25 candidates in Phase III, and we expect four to five products to be commercialised every year. This provides great comfort that momentum will be maintained even after FY20. In our estimates, we have built in only six commercial launches (five in FY18 and one in FY19) and 5 to 6% growth in the base business, leading to ~14% revenue CAGR, ~18% EBITDA CAGR and ~38% earnings CAGR over FY17-20E.

Dishman Carbogen Amcis Ltd. is trading below all available SMAs

Is Dishman Carbogen Amcis Ltd. worth buying?

442 Votes:

Buy 80.77%

Sell 12.44%

Hold 6.79%

40.00% Fall from 52W High

Dishman Carbogen Amcis Ltd. News and Updates

Keep track of all breaking news on Dishman Carbogen Amcis Ltd. from all sources in a single place.