Prabhudas Lilladher has given Buy recommendation for Torrent Pharmaceuticals with a target price of Rs. 3250 in its research report issued on May 26, 2022
Prabhudas Lilladher’s research report on Torrent Pharmaceuticals
Torrent Pharma’s (TRP) H2FY22 performance was muted however we believe profitability/margins to normalize from FY23, aided by price hike in branded generic business and cost optimization steps. TRP’s high exposure to branded generic business (~70% of total revenues) and chronic therapies provides comfort. Going ahead, timely resolution of plants will pick-up revenue growth in US and benefit operating leverage. We expect 20% EPS CAGR over FY22-24E.
We have cut our FY23 and FY24E EPS by ~10%. Maintain ‘Buy’ rating with revised TP of Rs3,250/share, 30x FY24E EPS.