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 gross margin came in at 80.8% (v/s. 78.8% expected) v/s.
77.2% in 3QFY2016, with EBIDTA margin coming in at 25.3% (v/s. 28.0%
expected) v/s. 27.5% in 3QFY2016. Consequently, the PAT came in at Rs51cr v/s.
Rs45cr in 3QFY2016, a yoy growth of 13.2%. We recommend a SELL.

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