Dishman Pharma - Q1FY2014 Result Review - Angel Broking

Dishman Pharma reported numbers lower than expected. During the quarter, Dishman reported a de-growth of 2.9% yoy in the top line to end the period at Rs. 306.2cr, V/s expectation of Rs. 349cr. The dip in the sales was on back of the MM segment, which de-grew by 22.0%, while the CRAMS segment grew by 8.6% yoy. The OPM came in much higher at 27.8% V/s expectation of 24.6% and a yoy expansion of 133bp. The expansion in margins was on back of gross margin improvement , which expanded by 211bps.However, a 21.3% yoy and 30.4% yoy rise in interest and depreciation expenses during the period lead the net profit to decline by 24.5% during the period.

We maintain buy on the stock.

Source : Equity Bulls

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