Prabhudas Lilladher's research report on Torrent Pharmaceuticals
Torrent Pharma’s (TRP) H2FY22 performance was muted however we believe profitability/margins to normalize from FY23, aided by price hike in branded generic business and cost optimization steps. TRP’s high exposure to branded generic business (~70% of total revenues) and chronic therapies provides comfort. Going ahead, timely resolution of plants will pick-up revenue growth in US and benefit operating leverage. We expect 20% EPS CAGR over FY22-24E.
We have cut our FY23 and FY24E EPS by ~10%. Maintain ‘Buy’ rating with revised TP of Rs3,250/share, 30x FY24E EPS.
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