[Source - The Hindu Business Line] Investors with a long-term perspective can consider adding the stock of Dishman Pharmaceuticals and Chemicals to their portfolio. An established player in the contract research and manufacturing services (CRAMS) space, Dishman appears well-placed to benefit from the forced austerity drives of the global pharma majors. Driven by receding product lines, fewer blockbuster launches and patent expiries, global pharma companies are looking at ways to contain costs. When seen in this light, contracting research and manufacturing services to low-cost providers helps combat earnings slippages. Strengthening demand apart, what also builds the case in favour of Dishman is its wide client network, falling dependence on Solvay for revenues and relatively cheap valuations. At the current market price of Rs 228, the stock trades at about 11 times its likely FY-10 per share earnings. Not only does this leave sufficient room for growth, it also compares fa...
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