Buy Dishman Carbogen Amcis, target Rs 404: Nirmal Bang Institutional Equities

Nirmal Bang Institutional Equities has a buy call on Dishman Carbogen Amcis Ltd. with a target price of Rs 404.. The current market price of Dishman Carbogen Amcis Ltd. is Rs 307.5 Time period given by the brokerage is a year when Dishman Carbogen Amcis Ltd. price can reach defined target.

Dishman Carbogen Amcis Ltd., incorporated in 2007, is a mid-cap pharma company with a market cap of Rs 4962.87 crore.

Investment rationale by Nirmal Bang
We have revised our financial estimates for DCAL, tapering our other operating revenue forecasts and also aligning our commercial manufacturing forecasts for the ovarian cancer drug in line with evolving competitive dynamics (entry of Rucaparib). We have valued DCAL at 11x EV/EBITDA (in line with peer group median multiple) and arrived at a target price of Rs404, which represents 19% upside from the CMP. We have upgraded our rating on the stock to Buy (from Accumulate earlier).