Is Now An Opportune Moment To Examine Dishman Carbogen Amcis Limited (NSE:DCAL)?

While Dishman Carbogen Amcis Limited (NSE:DCAL) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the NSEI over the last few months, increasing to ₹178 at one point, and dropping to the lows of ₹132. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Dishman Carbogen Amcis' current trading price of ₹142 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Dishman Carbogen Amcis’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Dishman Carbogen Amcis

Is Dishman Carbogen Amcis still cheap?

Good news, investors! Dishman Carbogen Amcis is still a bargain right now according to my price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Dishman Carbogen Amcis’s ratio of 24.39x is below its peer average of 35.66x, which indicates the stock is trading at a lower price compared to the Life Sciences industry. What’s more interesting is that, Dishman Carbogen Amcis’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Dishman Carbogen Amcis generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Dishman Carbogen Amcis. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since DCAL is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on DCAL for a while, now might be the time to make a leap. Its prosperous future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DCAL. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you'd like to know more about Dishman Carbogen Amcis as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that Dishman Carbogen Amcis has 3 warning signs and it would be unwise to ignore these.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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