Buy Torrent Pharma; target of Rs 1450: HDFC Securities

HDFC Securities' research report onTorrent Pharma

Despite a 9% decline in the India business, sequentially flat sales in the US and strong rupee appreciation during the last quarter, Torrent Pharma (TRP) reported 100bps QoQ improvement in EBITDA margin (21.6%) and 500bps higher gross margin, leading to a PAT of Rs 1.8bn (57% beat on our earnings estimates). Management has attributed this to the improved product mix in the US and Brazil markets, and price hikes in the India business.

Outlook

Maintain BUY with a TP of Rs 1,450 (20x Jun-19E).

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