@hitesh2710 there seems to be buying interest in Dishman Carbogen, with good volumes coming in.
If anyone can throw some lights on results!?
Dishman Carbogen seems to be coming out of a 5 year downtrend with the recently completed successful audits by the EDQM, AIFA and Japanese PDMA. Not only do these approvals open up incremental revenue opportunities, but this should finally enable the company to utilise Bavla much more relative to international French/Swiss operations and hence improve the margin profile.
As a story this reminds me of Piramal Pharma a couple of quarters back. This is an innovative CRAMS business with largely international operations and a management overhang (due to IT raids in 2019), offering deep value at 1.2x PS/0.5 PB. Recently significant Capex also has been completed and the France capex is scheduled to go live in upcoming Q4.
Eventually these are lumpy businesses and margins/revenues seem to be at an absolute bottom here last 3 quarters, in good times this has been a 25% OPM business. In general pharma tailwinds are now evident across the board and this is one company which should finally be able to use the completed inspections to significantly improve thier profitability/revenue profile, if not starting from results today but hopefully as things kick in in Q4’24 and FY 24/25.
Disclosure : Invested in self and family accounts and biased. I am not a SEBI registered advisor and this is not investment advice.
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Hi
Yes this company can be a multibagger from this levels as now bavla facility will start production after succesful edqm inspection plus french facility for next yr will add 20million euros plus indian crams business they can reach to 40% operating margins which they used to do precovid…as pe there latest concall fy25 they can do 20% ebitda and by next fiscal they can do ebitda of 25% with 15% topline growth…company available at a mere 12pe forward fy26 earnings
Because of management issues in past, it raids and issues related to goodwill recognition of 1000 crore, edqm issues this company is not getting desired valuation but once they start showing better results with 25% ebitda there might be a rerating on the cards.
Any senior members @Lynch any updates on the it raids outcome…i couldnt found out what was the penalty levied on the company and is the matter closed or still ongoing?
Disc
Recently added and looking to add more in current volatility
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