Buy Torrent Pharmaceuticals; target of Rs 1485: Khambatta Securities

Khambatta Securities is bullish on Torrent Pharmaceuticals has recommended buy rating on the stock with a target price of Rs 1485 in its research report dated May 31, 2018.

Broker Research

September 18, 2018 / 16:02 IST

Khambatta Securities's research report on Torrent Pharmaceuticals

Torrent Pharma’s total income increased 16.6% q-o-q and 20.1% y-o-y to Rs 17,220 mn in 4Q FY18 exceeding our expectations. Domestic sales increased 48.4% y-o-y during the quarter as it benefited from inclusion of branded businesss of Unichem Laboratories Ltd acquired in December 2017. US business also clocked growth of 9.3% y-o-y during 4Q FY18 benefiting from inclusion of revenues from liquid & suppository manufacturing facilities acquired during the quarter. Meanwhile, base business continued to be pressurised by pricing pressure. Total income remained flat y-o-y at Rs 60,020 mn in FY 2018.

Outlook

Torrent Pharma valuation through DCF is Rs 1,530 per share. Consequently, using a weighted average methodology we arrive at a share price of Rs 1,485, generating 5.5% potential upside from current levels. Hence, we reiterate our ‘Market-perform’ rating for Torrent Pharma common stock.

For all recommendations report, click here