Prabhudas Lilladher's research report on Torrent Pharmaceuticals
Torrent Pharma’s (TRP) Q1FY24 EBITDA was largely in line, however PAT was above our estimate led by lower tax and higher other income. Our FY24 and FY25E EPS stands increased by ~5% as we factor in higher GMs and lower tax. TRP has Rs 70bn (75% of total sales) worth of highly profitable branded formulation sales spread across India, Brazil and RoW markets. Curatio acquisition has been scaling up well with 700 bps margin improvement since acquisition. Historically TRP has successfully managed to integrate Unichem and Elder acquisition which gives us comfort.
Outlook
We expect 18% EBITDA CAGR and 31% PAT CAGR over FY23-25E. Maintain ‘BUY’ rating with revised TP of Rs 2,250/share, 20x EV/EBITDA to FY25E.
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