powerfulpicks stock opinion: DISHMAN PHARMA is a 2nd rung pharma player, primarily operating in the CRAMS (contract research for bigger pharmaceutical companies, hospitals and research foundations) and in the API segment (manufacture of active pharmaceutical ingredient). DISHMAN is currently not doing too well in the market because it posted lower revenues and lower OPM (operating profit margin) for Q1FY11 results that they declared. Their CRAMS business has not done too well recently. Going forward, however, the outlook seems positive. CRAMS business is going to pick up color in the next 1-2 years and DISHMAN stands to gain. Dishman's business with Abott, their primary client for API had suffered in the last few months, but is set to improve in near future. Dishman has recently announced some juicy contract wins from a couple of MNCs.
Current valuations at 180 looks attractive with minimum possible down side. Stock can be accumulated at these levels for a 12 month target of 260 (+44%)
No comments:
Post a Comment