ICICI Direct has given Hold recommendation for Torrent Pharmaceuticals with a target price of Rs. 1690 in its research report issued on Oct 22, 2022

ICICI Direct’s research report on Torrent Pharmaceuticals

Incorporated in 1959, Torrent remains a key play in branded generics (~60% of sales) with strong India franchise and growing exports traction • Revenues – India including CRAMs (59.8%), Brazil (8.3%), US (11.3%) and Germany (10.4%) • Torrent is the eighth largest domestic player and is ranked in top 10 for CVS, CNS, V&M, GI and anti-diabetes therapies in India.

Outlook

We downgrade the rating from BUY to HOLD as the current price factors in potential upside from the branded business. Valued at Rs 1690 i.e. 37x FY24E EPS of Rs45.7.

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