Karvy Stock Broking has recommended an outperformer rating on Torrent Pharmaceuticals, with price target of Rs 445, in its report dated November 6, 2009.

"We marginally downgrade our revenues by 1.4 % in FY 2010 to Rs 18,628 mn and by 2.1% to Rs 21,447 mn in FY 2011 on account of growth concerns of the company's Heumann business in the German market. However, we upgrade our FY 2010E EPS by 6.6 % to Rs.30.7 and FY2011E EPS by 7.2% to Rs 35.7 due to higher operating margins clocked by the company during 1HFY10 owing to better product mix. The stock is currently quoting at 12.4x FY 2010E and 10.6x FY 2011E.We upgrade our price target by 34.8% to Rs.445 based on 12.5x FY11E EPS. We maintain Outperformer rating on the stock." says Karvy.

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