We expect the companies under our pharmaceuticals coverage to report revenue growth of ~6% in Q4FY20 with 14.2% growth in profitability, driven by strong traction in India and API business. The US revenues are expected to decline by 1.6% YoY mainly due to high base and lack of meaningful launches. However, strong ramp-up in gTamiflu and steady base business performance in some US focused players due to potential increase in stocking at the wholesaler level can surprise on the positive side. With respect to domestic markets, the growth is likely to favour companies with larger presence in acute therapy led by extended acute season. Growth in other emerging markets and Europe is likely to be driven by new launches. The recent INR weakness will also benefit Indian pharma companies, but some of the margin benefit is being offset from EM currencies and higher API...

Margins and PAT above expectation: Total Revenues for the quarter grew by 4.2% to Rs 4274 mn, which includesRs 516 mn of other operating income. EBITDA was up by 9.1% YoY to Rs1327 mn on account of better gross margins.

Vitamin D analogues and cholesterol. EBITDA margins expanded from 24.8% to 27.5% (est.27%) on a YoY basis above our estimate mainly due to Carbogen Amcis and Vitamin D business saw upsurge in EBITDA margins.Q4 FY17 PAT decreased by 14% YoY to Rs. 428mn came below our estimate due to Sector Outlook...

Business Growth On Strong Footing Revaluation On EV/EBITDA Basis For 4QFY17, Dishman Pharmaceuticals and Chemicals (DPCL) reported revenues of Rs 5,342mn which were 37.4%/25.2% above our/Bloomberg estimate, respectively. Growth stood at 47.5%/26.6% on QoQ/YoY basis, respectively. This was driven by strong order execution new as well as deferrals from previous quarters. Despite a strong revenue performance, net profit was adversely impacted (down 20% QoQ) following an increase in non-cash costs. The non-cash costs (Rs 375mn) resulted from amalgamation of DPCL and its subsidiaries which came into effect in 4QFY17. The non-cash costs...

We initiate coverage on Dishman Pharmaceuticals and Chemicals (DPCL) with a Buy rating and a target price of Rs380. DPCL is primarily a contract research and manufacturing services (CRAMS) company which focuses on providing process development, scale-up and large-scale manufacturing of active pharmaceutical ingredients or APIs for supply to innovator pharmaceutical companies. Over the years, DPCL has built a robust business model which is capable of sustaining growth. 70% of DPCL's revenues come from CRAMS and the rest from marketable molecules (vitamin D analogue, anti-cholesterol). CRAMS business is the growth driver and is structured in such a manner that 60%-65% of sales...

Dishman Pharmaceuticals posted results lower than expected for 3QFY2017, with sales at Rs356cr v/s. Rs386cr in 3QFY2016, down by 7.6% yoy, mainly on the back of CRAMS. CRAMS sales (Rs246.7cr) de-grew by 16.5% yoy, constituting 69.2% of sales in 3QFY2017; while others (Rs110cr) posted a growth of 21.2% yoy. On the operating front, the gros..

logues and cholesterol. EBITDA margins declined from 28.3% in to 26.4% (est.26.7%) on a YoY basis slightly below our estimate mainly due to CRAMS UK and other marketable molecules saw a decline in EBITDA margins.Q3 FY17 PAT increased by 8% YoY to Rs. 547mn came inline with our estimate of Sector Outlook Rs. 547mn due to higher other income (foreign currency gains). Interest expense declined by 27.5% YoY in Q3 FY17 driven by lower debt, conversion of rupee debt into foreign debt. Hence, PAT margin Stock...

Large Global MNC players prefers CRAMS facility based out of Europe for their research work for any of their molecules starting from phase zero to phase three. Carbogen Amcis contributes 5055% of total revenue and 5-10% growth rate expected from this Share holding pattern as on Sep 2016 (%)...

Crams: The segment reported Rs 269 cr revenues in FY16 with EBITDA margins of 50% from 16 commercialised products however 3 molecules contribute more than 75% of it. However, to continue with its strategy of diversification, the company is working on quite few molecules and out of them 13 have reached in Phase 3 stage. Crams segment is expected to grow at 15% for FY17E/FY18E due to increased supplies of Eprosartan to Mylan. The management expects 2-3 products to get commercialised in next 12-18 months, driving revenue growth in medium term....

The company posted better than expected results for 1QFY2017 with sales at Rs366cr V/s Rs350cr expected and V/s Rs400cr in 1QFY2016, a yoy de-growth of 8.5%. CRAMS (Rs258cr) posted a growth of 2.3% yoy and the Market Molecules other segment (Rs108cr) posted de-growth of 26.9% yoy. On the operating front, the EBITDA margin came in at 25.3%..

Revenues for the quarter declined by 8.5% at Rs 3658mn below our estimates of Rs 4181 mn. The margins were at 27.2% in Q1 FY17 as against our estimates of 25.9%. Higher margins were on account of better gross margins and lower other expenses. Profits for the quarter were higher by 11% YoY to Rs 455 mn but lower as against our estimates of Rs 470 mn.

Dishman is a leading global outsourcing partner for the pharmaceutical industry, based in Ahmedabad in Gujarat, India. It has cost-effective, high quality research, development and manufacturing services that include the production and supply of tailormade, high-quality Intermediates and innovative and generic Active Pharmaceutical Ingredients (APIs) straddling the entire pharmaceutical value chain. Dishman is present globally through multiple manufacturing sites in Europe, India, China and Saudi Arabia. Through its end-to-end core...

Dishman Pharma & Chemicals Ltd (DPCL)'s overall strategy of focusing on improving margins is paying off with company reporting 28.3% consolidated EBITDA margins (vs 21%/26% in Q3FY15/Q2FY16), one of the highest in recent...

For 2QFY2016, Dishman Pharmaceuticals and Chemicals (Dishman) posted lower than expected results on the sales front while a higher other income aided the net profit to come in marginally higher than expected. The company posted a 4.8% yoy dip in sales to Rs374cr V/s Rs392cr in 2QFY2015. Sales for 2QFY2016 declined 4.8% yoy to Rs374cr V/s an expected Rs429cr and V/s Rs392cr in 2QFY2015. The CRAMS segment (Rs269.6cr) posted a decline of 4.1% while the other segment (Rs103.9cr) posted a dip of 6.4% yoy. On the operating front, the GPM came in at 75.8% V/s 72.3% expected and V/s 69.7% in 2QFY2015. However, in spite of the same, the OPM came in at 22.5% V/s 22.0% expected and V/s 20.5% in 2QFY2015. The net profit consequently came in at Rs36.5cr V/s Rs35.6cr expected and V/s Rs33.4cr in 2QFY2015, a yoy growth of 9.4%. The other income during the period came in at Rs15.1cr V/s Rs7.8cr in 2QFY2015. We maintain our Neutral stance on the stock. Results lower than expected on the sales front: Sales for 2QFY2016 declined 4.8% yoy to Rs374cr V/s an expected Rs429cr and V/s Rs392cr in 2QFY2015. The CRAMS segment (Rs269.6cr) posted a decline of 4.1% while...

After bumper Q1FY16 results, Dishman Pharma & Chemicals Ltd (DPCL) reported below expectations results for the quarter. Consolidated Sales declined by 4.5%yoy/5.7% qoq to Rs 381 cr. Per company an order delivery of...

ff Vitamin D3 has been key performer. This segment has reported margins ~27% in 2Q on the back of its prudent strategy catering to only select customers with high margin products. Management guided of 22% margins for FY16E vs. 19% in...

Total Revenues of Dishman Pharma increased by 10.4% YoY to Rs 4,005 mn, below our estimate of Rs 4,183 mn on back of better performance in CRAMS-India, CRAMS-Carbogen Amics, Vitamin-D and Others. Operating margins have been higher at 26.1% (higher than our estimate of 21.6%) as compared to 20.8% in Q1FY15 on account of lower raw material cost.