Anand Rathi's research report on Torrent Pharmaceuticals
One of the most expensive deals in domestic pharma, Torrent Pharma’s acquisition of Curatio Healthcare for Rs20bn values it at 8.8x EV/sales. The deal will widen Torrent’s reach among paediatricians and dermatologists (nearly 85% of its dermatology portfolio is cosmetic dermatology). The synergies from this deal should reflect in FY25, as well as the benefit from greater MR productivity and the expansion to the north and east zones. Interest costs and amortisation are expected to increase on the consummation of the deal (in a month).
We retain our Buy on the stock, with an unchanged target price of Rs1,724 (at FY24e 19x EV/EBITDA).
At 17:30 Torrent Pharmaceuticals was quoting at Rs 1,547.05, up Rs 52.15, or 3.49 percent.
It has touched an intraday high of Rs 1,554.00 and an intraday low of Rs 1,494.05.
It was trading with volumes of 13,710 shares, compared to its thirty day average of 14,212 shares, a decrease of -3.53 percent.
In the previous trading session, the share closed down 2.52 percent or Rs 38.70 at Rs 1,494.90.
The share touched its 52-week high Rs 1,652.23 and 52-week low Rs 1,242.50 on 31 December, 2021 and 12 May, 2022, respectively.
Currently, it is trading 6.37 percent below its 52-week high and 24.51 percent above its 52-week low.
Market capitalisation stands at Rs 52,359.20 crore.
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