Neutral Torrent Pharma; target of Rs 3770: Motilal Oswal

Motilal Oswal's research report on Torrent Pharma

Torrent Pharma (TRP) delivered in-line financial performance for the quarter. YoY growth improved in the US generics and LATAM markets, led by new product launches and steady market share gains in the base portfolio. After a slowdown in the LATAM business in FY25, TRP has revived growth in this segment, outperforming the market over the past two quarters. Product approvals and enhanced marketing efforts have driven higher YoY growth. The company has already submitted the application for Semaglutide and is well-positioned to benefit from this opportunity, given its strong brand franchise in this market.

Outlook

We largely maintain our estimates for FY26/FY27/FY28. We value TRP at 40x 12M forward earnings to arrive at a TP of INR3,770. TRP remains well-positioned to deliver industry-leading growth in DF/LATAM.