Prefer Dishman Pharma, Sun Pharma: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "From a valuation perspective, I think we are very close to fair valuations where Glenmark Pharma is trading currently and out of the three regions that it caters to US contributes almost one-third. Posted revenues of close to USD 88 million if I am not mistaken and for the next three quarters if it has to fulfil its foresight of 18-20 percent growth, it needs to clock in around USD 106 million in sales.""The domestic operations have held on pretty well. So 29 percent contribution to the topline and 18-20 percent growth exhibited. The quest of the world markets and Europe is where the cross currency impact might hit the hardest and the new launches that they did in the last quarter, that will yield them some incremental revenues to the tune of USD 30-40 million as well. However, I think valuations is a key concern for Glenmark at this point of time, so it is fairly valued," he added."Options within the pharmaceutical space would be Sun Pharmaceutical Industries with a target of Rs 950 which in our opinion again at the current juncture encapsulates most of the negatives in terms of resolution issues, remedial issues, the Halol issue that it is facing and something like a Dishman Pharmaceuticals & Chemicals is well on declines. The numbers were good and in terms of how the earnings will pan out, the EBITDA margin expansion should be quite significant with contribution happening from CRAMs and Vitamin D business," he said.