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Last Updated : Jun 28, 2019 03:15 PM IST | Source: Moneycontrol.com

Torrent Pharma gains as Credit Suisse stays positive on India biz, sees double digit return

The research house maintained an outperform call on the stock with a target price at Rs 1,750 per share, implying a 14 percent potential upside from current level.

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Torrent Pharmaceuticals shares gained 1.4 percent intraday on June 28 after global brokerage house Credit Suisse retained its positive stance on the stock on the back of good India business.

The research house maintained an outperform call on the stock with a target price at Rs 1,750 per share, implying a 14 percent potential upside from the current level.

"We are surprised by a sharp margin increase in Germany to 21 percent. Overall margin should be even higher," Credit Suisse said, adding the company's working capital cycle stays as the best in the sector.

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The brokerage further said company's FY20 capex will be lower at Rs 350 crore and should help free cash flow. "We remain positive on the company due to good India business."

However, its near-term overhang is flag classification for Dahej & Indrad by USFDA, Credit Suisse said. "Potential Official Action Indicated (OAI) flag at Dahej & Indrad could impact company's FY21 EPS estimates by 8-10 percent."

The stock rallied 8 percent in last one year. It was quoting at Rs 1,546.35, up 1.10 percent on the BSE, at 1428 hours.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Jun 28, 2019 03:15 pm
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