Moneycontrol PRO
Upcoming Webinar:Watch a panel of experts discuss: Challenges of continuously evolving regulation for Cryptocurrency, on 7th July at 3pm. Register Now

Buy Torrent Pharma; target of Rs 3200: YES Securities

YES Securities is bullish on Torrent Pharma has recommended buy rating on the stock with a target price of Rs 3200 in its research report dated October 26, 2020.

October 29, 2020 / 12:50 PM IST
  • bselive
  • nselive
Todays L/H

YES Securities' research report on Torrent Pharma

Increasing lack of visibility on US sales a blessing in disguise as branded share seen increasing ~200bps to 65% in FY22; similar rerating at IPCA (16x to 26x) was seen in the recent past. Domestic market will increasingly reward players with larger brands- Torrent to maintain growth of big bands like Shelcal and Losar which will continue to gain share. Margins can surprise on upside as MR productivity to touch Rs1mn per MR per month; current revenues per MR already one of the highest in industry. Chronic share is amongst highest and relative to Alembic we reckon Torrent exudes better confidence on growth – hence should trade at a premium to Alembic. Raised our FY22 EPS by ~12% to Rs91 on improved margin assumption and now are ~5% ahead of consensus.


Upgrade Torrent to BUY from SELL with revised TP of Rs3,200 (vs Rs2,030 earlier) based on 35x FY22 PE; solid FCF yield of ~3.5% lends support

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Oct 29, 2020 12:50 pm
ISO 27001 - BSI Assurance Mark