Emkay Global Financial Services has recommended hold rating on Torrent Pharma with a target of Rs 618, in its October 19, 2011 research report.
"Torrent Pharma, Q2'12 results were subdued - with Revenues at Rs 6.6bn (up 19% YoY), EBITDA at Rs 1.1bn (up 31%) & APAT at Rs 793mn (up 15% YoY). Growth in revenues were led by 32% growth in exports - 57% growth in US, 28% growth in Heumann (German subsidiary) and 34% growth in Brazil. Domestic business growth remained subdued at 7% on back of increased competition in gastro and anti-biotic segment."
"We expect Torrent to report 14% revenue CAGR over FY11-13E. EBIDTA margins are expected to increase from 16.7% in FY11 (adjusted margins 18.5%) to 18.5% in FY12E and 19% in FY13E. Earnings will grow by 21% CAGR over FY11-13E. We maintain our earnings and target price on the stock at Rs 618 (14xFY13E EPS of Rs 44.2) with a Hold rating. At CMP, Torrent trades at 16x FY12E and 13x FY13E EPS," says Emkay Global Financial Services research report.
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