*Smallcap Pharma Pick: SMS Pharma*:                          Doyens like RJ and MOSL are extremely bullish on Pharma stock. In such a scenario, Hyderabad based SMS Pharma is excellent pick in smallcap Pharma segment.                                Shortly, * value unlocking will take place as co will demerge it's non- regulatory biz into a separate entity* . Regulatory (USFDA) biz will remain in listed SMS Pharma. Shareholders will get 1 share of SMS Laboratories ( demerger ratio 1:1) which will be listed at Bse Nse. Estimated ratio of topline of demerger entities should be 50:50. Demerger will result in big wealth addition for the shareholders.                         In the meantime, SMS has reported *25% rise in NP for Q4*

SMS Pharma Standalone YoY Q4

Revenues at `157.3 cr vs `147 cr, up 7%

PAT at `12.92cr vs `10.34 cr, up 25%

Higher other expenses on US FDA charges, R&D and new plant setup costs.           SMS is targeting 15% CAGR for next 5 years.                     TP Rs 130 in 3 months, Rs 175 in 12 months