Dishman Pharmaceuticals and Chemicals is trading higher by 4% at Rs 105, its highest level since April 2011 on the Bombay Stock Exchange.
A combined 2.8 million shares have already changed hands on the counter till noon deals against an average around two million shares that were traded daily in past two weeks.
The stock of mid-cap pharmaceuticals company has outperformed the market by appreciating 59% after reporting a better-than-expected net profit growth for Q1FY13 on July 31, 2012. The benchmark Sensex has gained 3.2%, while pharmaceutical sector index rose 4.5% during the same period.
For Q1FY13, the company reported a net profit of Rs 39 crore as compared to the Rs 15 crore during the last corresponding period.
The company is expected a net profit of around Rs 100 crore for FY2013 against Rs 56.84 crore in FY2012. The company has guided for 15% growth on the top-line with operating margins of 21% for FY2013.
Analyst at Angel Broking said that “Dishman is well placed to benefit from the organic capex of around Rs 300-Rs 400 crore incurred over the last four years towards building facilities and expansion of other existing facilities. Post the new facilities getting operational; the company is likely to enter into long-term API supply contracts with these players, thereby resulting in stable revenue flow going ahead.”