Torrent Pharma an outperformer, target of Rs 445: Karvy

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Karvy Stock Broking has come out with a research report on Torrent Pharma . The research firm has maintained outperformer rating on the stock with a price target of Rs 445.

"Domestic formulations business comprises 40% of the business. The gross margins of the company have improved on the back of better product mix and lower API cost for the industry in general. Chronic segments CVS contributes 27%, CNS 23% and Gastro 20%. The company is currently No 1 in CVS segment, No 3 in CNS segment in terms of market share. As these segments grow in excess of industry growth rates the company has been able to grow by 15 % in H1 FY 2010. Torrent Pharma (Torrent) currently has approximately 10% of its revenues under DPCO", says Karvy Stock Broking.

The report also says, "On account of continued traction in various markets and improved profitability in these markets we maintain our outperformer rating on the stock with a price target of Rs 445 based on 12.5x FY 2011E."

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To read the full report click on the attachment