ICICI Direct has given Buy recommendation for Torrent Pharmaceuticals with a target price of Rs. 3290 in its research report issued on Feb 09, 2021
ICICI Direct’s research report on Torrent Pharmaceuticals
Q3 revenues remained flattish (up 1.5% YoY) at Rs 1995 crore (I-direct estimate: Rs 2072 crore) mainly due to 23.4% YoY decline in US formulations to Rs 292 crore. Domestic sales grew 6.8% YoY to Rs 930 crore. Brazil de-grew 8.5% YoY to Rs 173 crore. Germany business grew a robust 21.0% YoY to Rs 265 crore. EBITDA margins expanded 296 bps YoY to 30.4% (I-direct estimate: 30.5%) mainly due to lower other expenses amid lower travel and promotional spends. Subsequently, EBITDA grew 12.4% YoY to Rs 607 crore (I-direct estimate: Rs 632 crore). PAT grew 18.3% YoY to Rs 297 crore (I-direct estimate: Rs 289 crore) in line with operational performance.
We maintain BUY with a TP of Rs 3290 (earlier Rs 3135) based on 32x FY23E EPS of Rs 102.8
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