Sharekhan's research report on Torrent Pharmaceuticals
Torrent Pharma’s average sales growth stood at 13.5% (for January and February), beating the Indian Pharma Market’s (IPM’s) 11.3% growth for the same period. On a MAT basis, sales grew by 15.5% for February 2023 versus the IPM’s 8.2%. Torrent Pharma’s IPM-based average revenue growth run rate for Q4FY23E is in line with our estimate of 13.0%. We, hence, maintain our overall revenue and earnings growth estimates at 12.3% and 19.5% CAGR over FY2022-FY2025E, respectively. Key markets such as India and Brazil will continue to support revenue growth while Curatio’s acquisition will aid margin expansion.
Stock trades at 31.3x/24.5x its FY24E/FY25E EPS estimates. We maintain a Buy on Torrent Pharma with an unchanged PT of Rs. 1,788.
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