Neutral Torrent Pharma; target of Rs 3410: Motilal Oswal

Neutral

Motilal Oswal's research report on Torrent Pharma

Torrent Pharma (TRP) delivered largely in line earnings in 3QFY25. The superior performance in domestic formulation (DF) was offset by currency headwinds in Brazil and zero insulin CMO sales. TRP continues to strengthen its presence in DF market through the addition of MRs and enhancing its reach in the consumer health segment. The US business is yet to witness interesting approvals despite having regulatory compliance in place. We trim our EPS estimates by 4%/5%/5% for FY25/FY26/FY27, factoring in currency challenges in Brazil business and a subdued outlook for the US market. We value TRP at 38x 12M forward earnings to arrive at a TP of INR3,410.

Outlook

We trim our EPS estimates by 4%/5%/5% for FY25/FY26/FY27, factoring in currency challenges in Brazil business and a subdued outlook for the US market. We value TRP at 38x 12M forward earnings to arrive at a TP of INR3,410.

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