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Dishman Pharmaceuticals: Expansion is the Best Medicine

DISHMAN | BSE CODE: 532526 | VOLUME: 1,57,167 | CMP: Rs 164 | FACE VALUE: Rs.2

Dishman Pharmaceuticals and Chemicals offers research, development and manufacturing services that include production and supply of intermediates and generic active pharmaceutical ingredients (APIs) to the global pharmaceutical industry. In Q3 FY15, the company posted a net profit Rs 24.03 crore versus Rs 15.16 crore last year same quarter. Revenues for the company were up 24 per cent at Rs 389 crore versus Rs 314 crore for the same period, a year ago. The company has already started production in China. Its first big order has already gone out of the factory in January and in Q4 FY15 the company is expced to see a cash break-even. As on September 30, the company’s debt stands at Rs 720 crore and its debt to equity ratio is around 0.59. The company is also focused on reducing debt by Rs 100 crore in FY16 through internal cash accruals.

Rajesh Exports: Getting a Golden Hue

RAJESHEXPO | BSE CODE: 531500 | VOLUME: 73,872 | CMP: Rs 175| FACE VALUE: Rs.1

Rajesh Exports is India’s largest exporter of gold jewellery. It posted 87 per cent growth at Rs 171 crore as against to Rs 92 crore in the same quarter last fiscal. The total income from its operations surged 147 per cent to Rs 12,432 crore as against Rs 5,023 crore in the quarter ended December 31, 2013. The company also recently announced its foray into the gold finance business through a separate business division. It will also boost retail sales and add incremental value to the retail business apart from the initiation of a new gold finance vertical. Rajesh Exports is trading at a TTM PE ratio of around 10 and on the basis of its price-to-book it trades at 1.62x.