Dishman Pharma catches the 'IT' viral
Shares of Ahmedabad-based Dishman Pharmaceuticals are down 4.7% in trade or Rs. 2.90 and are currently ruling at Rs. 58.65 per share. The 52 week high and low prices are 124.50 and 37.05 respectively, on the BSE.
Income Tax authorities are conducting a survey at the factory and offices of this contract research and bulk drug manufacturer since Friday 11th October, in relation to a Rs. 42 crore sale of land from Dishman SEZ to Dishman Pharma. While the company has claimed expemtion under the income tax laws for the sale transaction and does not expect any ‘material additional tax liability’ to emerge out of the survey findings, the market is particularly unhappy about the incident and hence the price beating.
For FY13, Dishman reported consolidated revenue of Rs. 1,272 crore and net profit of Rs. 100 crore, on EPS of Rs. 12.42. Q1FY14 revenues and net profit rose to Rs. 307 crore and Rs. 29 crore respectively, leading to a consolidated EPS of Rs. 3.62 for the first quarter. With market cap of Rs. 472 crore, share is trading at PE multiple of less than 4 times.