4693 Investors following Torrent Pharma. Share this News with them.
0
Like this story, share it with millions of investors on M3
Buy Torrent Pharma, target of Rs 200: Karvy
Karvy Stock Broking has recommended a buy rating on Torrent Pharmaceuticals with a target of Rs 200. The research firm expects the company's key growth enablers, domestic formulation business and generics business in Brazil, Russia and Europe set to grow the top-line at a CAGR of 15.3% from Rs 13.55 bn in FY08 to Rs 18.02 bn in FY10.
Karvy Stock Broking has recommended a buy rating on Torrent Pharmaceuticals with a target of Rs 200 in its January 13, 2009 research report. "We expect the company's key growth enablers, domestic formulation business and generics business in Brazil, Russia and Europe set to grow the top-line at a CAGR of 15.3% from Rs 13.55 billion in FY08 to Rs 18.02 billion in FY10. We anticipate the EBITDA margins to expand from 15% in FY08 to 16.9% in FY09E and 17.7% in FY10E on back of improved profitability and higher volumes in international operations, cost saving initiatives like site transfer of products to India and better product mix."
'The bottom-line is expected to grow at a CAGR of 25.6% from FY08 to FY10E on back of incremental revenue flow, expansion in operating margins and lower taxes. Currently, Torrent Pharma is quoting at attractive valuations of PE of 5.1x on FY10E. Considering improving return ratios and critical size of Rs 15.7 billion in FY09E, we believe the company is a BUY with the price target of Rs 200 on PE of 8x FY10E EPS at Rs 25.1," says Karvy Stock Broking's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click on the attachment......
