Motilal Oswal's research report on Torrent Pharma
Torrent Pharma (TRP) is set to acquire Curatio Healthcare (Curatio) for enterprise value of INR19b. While the acquisition will help with the company’s portfolio expansion and widen its reach to dermatologists/paediatricians, the deal valuation is expensive at 6.8x EV/ FY23 sales, 22.4x EV/FY23 EBITDA basis. We reduce our EPS estimate by 2% for FY24 to factor in the Curatio acquisition. We value TRP at 26x 12M forward earnings to arrive at a price target of INR1500. Considering its limited upside potential, we reiterate our Neutral stance on the stock.
We have tweaked our EPS estimate by -2% for FY24 to factor in Curatio acquisition. We continue to value TRP at 26x 12M forward earnings to arrive at a price target of INR1500. While TRP remains a leading player in the DF segment, we reiterate our Neutral rating on its limited upside potential.
At 16:01 hrs Torrent Pharmaceuticals was quoting at Rs 1,493.20, down Rs 40.40, or 2.63 percent.
It has touched an intraday high of Rs 1,502.00 and an intraday low of Rs 1,449.25.
It was trading with volumes of 39,819 shares, compared to its thirty day average of 12,761 shares, an increase of 212.03 percent.
In the previous trading session, the share closed up 1.30 percent or Rs 19.70 at Rs 1,533.60.
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 9.63 percent below its 52-week high and 20.18 percent above its 52-week low.
Market capitalisation stands at Rs 50,536.67 crore.
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