This beaten down pharma stock has zoomed over 50% in last 11 trading days

Shares of Dishman Carbogen Amcis zoomed 14 per cent to Rs 124 on the BSE in Tuesday’s intra-day trade on the back of heavy volumes. In the past 11 trading days, the stock of the pharmaceutical company has zoomed 51 per cent from a level of Rs 81.90 on February 6.

At 13:04 pm; Dishman was up 13 per cent at Rs 122.95 as compared to a 0.03 per cent rise in the S&P BSE Sensex. A combined 6.44 million equity shares representing 4.1 per cent of total equity of Dishman changed had hands on the NSE and BSE.

Dishman Carbogen Amcis is a fully integrated CRAMS (Contract Research & Manufacturing) company with strong capabilities right from process research & development to late stage clinical and commercial manufacturing and supply of API to innovator pharmaceutical companies.

The company has global presence with development and manufacturing sites in Switzerland, UK, France, Netherlands, India, and China.

Dishman provides end-to-end integrated high-value niche CRAMS offering and has comprehensive product offerings which include APIs, high potent APIs, intermediates, phase transfer catalysts, vitamin D analogues, cholesterol, lanolin-related products, antiseptic and disinfectant formulations.

However, in the past one year, the stock has underperformed the market by falling 31 per cent as compared to a 5 per cent rally in the S&P BSE Sensex. It has corrected 38 per cent from its 52-week high level of Rs 201, touched on April 5, 2022. It had hit a record high of Rs 397 on January 25, 2018.

On February 13, 2023, Anvil Wealth Management Private Limited had purchased 1.19 million shares representing 0.76 per cent of total equity of Dishman at price of Rs 99.44 per share on the NSE, the exchange data shows. The names of the sellers were not ascertained immediately. CLICK HERE FOR DETAILS

Meanwhile, for the October-December quarter (Q3FY23), Dishman reported a 32.7 per cent year-on-year (YoY) jump in its consolidated net profit of Rs 46.96 crore against Rs 35.38 crore in Q3FY22. Net revenue increased 13.8 per cent YoY to Rs 639.8 crore from Rs 562.08 crore in the year ago quarter.

EBITDA (earnings before interest, taxes, depreciation, and amortization) margin however, contracted to 18 per cent in Q3FY23 compared to 19.5 per cent in Q3FY22 due to lower EBITDA margin for the India business, especially for the Bavla site due to certain one time EDQM expenses and lower EBITDA margin for the Dutch business due to higher prices of raw materials and higher energy costs.