Motilal Oswal's research report on Torrent Pharma
Torrent Pharma (TRP) delivered largely in-line 1QFY25. TRP posted robust 14.7% YoY growth in domestic formulation (DF) segment. However, this was partly offset by floods in some provinces in Brazil and the lack of approvals in US generics segment. TRP delivered the highest gross margin in the past 20 quarters. TRP remains a promising play in the pharma space, with 64% of its revenue derived from branded generics and sustainable outperformance to industry in DF/Brazil. ANDA approvals are expected to pick up, which would not only boost revenue growth but also improve profitability of the US generics segment. Accordingly, we estimate a 32% earnings CAGR over FY24-26.
Outlook
We maintain our FY25 earnings estimate. We raise our FY26 earnings estimate by 3% to factor in a) the benefit of ANDA approvals, b) the addition of products in OTC segment in India, and c) the shift to the new tax regime. We value TRP at 36x 12M forward earnings to arrive at a TP of INR 3,340.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
