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!