Anand Rathi has given Buy recommendation for Torrent Pharmaceuticals with a target price of Rs. 1724 in its research report issued on Sep 28, 2022

Anand Rathi’s research report on Torrent Pharmaceuticals

One of the most expensive deals in domestic pharma, Torrent Pharma’s acquisition of Curatio Healthcare for Rs20bn values it at 8.8x EV/sales. The deal will widen Torrent’s reach among paediatricians and dermatologists (nearly 85% of its dermatology portfolio is cosmetic dermatology). The synergies from this deal should reflect in FY25, as well as the benefit from greater MR productivity and the expansion to the north and east zones. Interest costs and amortisation are expected to increase on the consummation of the deal (in a month).


We retain our Buy on the stock, with an unchanged target price of Rs1,724 (at FY24e 19x EV/EBITDA).

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