Prabhudas Lilladher's research report on Torrent Pharmaceuticals
Torrent Pharma’s (TRP) Q4FY24 EBITDA/PAT was largely in-line. Our FY25/ FY26E EBITDA broadly remains unchanged. TRP reported Rs 80bn (75% of total sales) worth of highly profitable branded formulation sales spread across India, Brazil and RoW markets. Curatio acquisition has been scaling up well with sharp margin improvement since acquisition. We expect 16% EBITDA CAGR and 30% PAT CAGR over FY24-26E with healthy return ratios of +30%. At CMP, stock is trading at 24x EV/EBITDA/41x P/E on FY26E.
Outlook
We recommend Accumulate (Buy earlier) with revised TP of Rs3,300/share, valuing at 25x EV/EBITDA on FY26E. TRP continues to explore inorganic opportunities which will be key for stock performance.
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