Major issues at India level - Q3 revenue is 40cr !!. For 2 years CFO Harshil Dalal has been talking about 800 cr revenue. I think investors are being misled here. Even in latest concall only when the question was more pointed then he accepted that revenue growth will come from FY 28 and not FY27 – even that i doubt will happen.
I have read many concall transcripts (for past 4 years) and i think company is just giving false hopes to investors. Even if revenue grows it will never translate into profits due to high cost in Swiss and HUGE DEBT.
We need to understand that however well the Swiss entitiy Carbogen performs the margins are much lower there and are not comparable with other Indian CDMO companies manufacturing in India - then how can Dishman get same valuation as them? Also if capacity is available at Carbogen why hasnt it being growing in the past. I think Carbogen is at peak levels, even if new contracts come overall revenue will remain same due to capacity constraints.
Where they have capacity - India and China utilisation is very low… i think investors need to be more objective rather than getting swayed away by tall forecasts made in investor calls. Please read the previous call (over last 4 years) - every call you will think company is going to turnaround and it never does !!
Disclosure - Held shares but managed to get out without loss.