Karvy Stock Broking has issued a technical Buy call on Dishman Pharma. The stock broker recommends buying stock with target Rs 225 against current market price Rs 169,upside 33%.

Commenting on the investment rationale, the stock broker said, 'We downgrade our revenues for FY15E by 4.8% to Rs15.3 billion and by 1.9% to Rs 17.5billion for FY16E mainly on account of downgrade in Carbogen and Vitamin D3 business. We reduce our EBIDTA Margin by 50bps to 25% for FY15E and upgrade from 23.6% to 26% for FY16E due to better gross margins and savings in overheads. We downgrade our EPS estimates by 12.9% to Rs14.9 for FY15E and upgrade by 1% to Rs 22.3 for FY16E. We upgrade our price target to Rs 225 based on 10x FY16E and maintain our 'Buy' recommendation for the stock.'

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