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What should investors do with Torrent Pharma post Q3 result: Buy, sell or hold?

The share touched its 52-week high Rs 3,040 and 52-week low Rs 1,619 on 11 August, 2020 and 19 March, 2020, respectively.

February 09, 2021 / 09:51 AM IST
 
 
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Torrent Pharmaceuticals share price declined 5 percent in the early trade on February 9 on the back of the company's December quarter numbers, announced a day before.

The company posted 18.3 percent YoY jump in its net profit at Rs 297 crore for the quarter ended December 2020 against Rs 251 crore in the December 2019 quarter.

Its revenue was up at Rs 1,995 crore in December 2020 from Rs 1,966 crore in December 2019.

Here is what brokerages have to say about the stock and the company after the Q3 numbers:

Goldman Sachs | Rating: buy | Target: Rs 3,320 per share

Close

The soft US trend offsets growth in rest of business, while company expects a sequential pick-up in the India segment to continue.

Brazil & Germany will cushion soft near-term trajectory in the US, while medium-term opportunity on the company looks attractive, reported CNBC-TV18.

CLSA | Rating: Buy | Target: Raised to Rs 3,560 per share

It was a steady show in Q3 and strong margin yet again. Company’s India positioning is strong.

CLSA reduces FY21-23 EPS estimate by 2%, reported CNBC-TV18.

Credit Suisse | Rating: Underperform | Target: Rs 2,280 per share

There was good execution in India but consensus margin expectations are higher. The Q3 an in-line quarter & reinforces view of high margin expectations.

The consensus estimates factor in FY22 margin to be similar to that of FY21, reported CNBC-TV18.

Citi | rating: Buy | Target: Rs 3,100 per share

It was a decent quarter with margin strength continues. The strong margin despite multiple headwinds show the resilience of business. Expect the earnings momentum to improve further, reported CNBC-TV18.

ICICI direct | Rating: Buy | Target: Rs 3,290

Q3 results were mostly in line with I-direct estimates (albeit skewed) on all fronts. While growth in India and Germany was mostly offset by decline in the US and Brazil, overall profitability was higher YoY amid lower on-ground activities and a lower tax rate.

Overhang pertaining to two US focused plants notwithstanding, Torrent continues to impress thanks to its robust margin profile that can be attributed to global portfolio that comprises ~65% branded generics. We expect a further improvement in this matrix, product rationalisation to further strengthen margins. The company’s portfolio is finely balanced between India, Brazil, Germany and the US with India being the leader.

torrent pharma

At 09:35 hrs Torrent Pharmaceuticals was quoting at Rs 2,620, down Rs 137.95, or 5 percent on the BSE.

The share touched its 52-week high Rs 3,040 and 52-week low Rs 1,619 on 11 August, 2020 and 19 March, 2020, respectively.

Currently, it is trading 13.82 percent below its 52-week high and 61.83 percent above its 52-week low.
Moneycontrol News
first published: Feb 9, 2021 09:51 am

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