Motilal Oswal recommended Neutral rating on Torrent Pharma with a target price of Rs 1510 in its research report dated July 30, 2022.
The drug firm had posted a net profit of Rs 330 crore in the April-June period of the last fiscal.
Net Sales are expected to increase by 11 percent Y-o-Y (up 11.1 percent Q-o-Q) to Rs 2,367.8 crore, according to ICICI Direct.
According to the terms of the definitive agreement, Torrent Pharma will take over the manufacturing, marketing and distribution of these brands in India.
The company has also declared a final dividend of Rs 23 (460 percent) per share of Rs 5 each including special dividend of Rs 15 per share.
Torrent Pharma announced on Wednesday that its consolidated loss for the fourth quarter ended March 2022 was Rs 118 crore, owing to an impairment charge of Rs 425 crore relating to the cessation of its liquids business in the United States.
Margin should recover in the two quarters, driven by price hikes in India and Brazil adding that India outlook remains strong, which keeps us constructive on the stock, CLSA said
The affected lot has been produced in India and later the company has supplied to its US-based subsidiary for distribution in the US, the world’s largest market for generic drugs.
The drug maker had reported a net profit of Rs 310 crore in the July-September period of last fiscal.
Net Sales are expected to decrease by 5.8 percent Y-o-Y to Rs 1,837 crore, according to KRChoksey.
Net Sales are expected to increase by 7.7 percent Y-o-Y (up 14.3 percent Q-o-Q) to Rs 2,214.3 crore, according to ICICI Direct.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 6.2 percent at Rs 582 crore and margin was at 30 percent.
Net Sales are expected to increase by 4.6 percent Y-o-Y (up 1.5 percent Q-o-Q) to Rs. 2,000.7 crore, according to Sharekhan.