Prabhudas Lilladher has given Buy recommendation for Torrent Pharmaceuticals with a target price of Rs. 1850 in its research report issued on Oct 25, 2022
Prabhudas Lilladher’s research report on Torrent Pharmaceuticals
Torrent Pharma’s (TRP) has Rs 70bn (75% of total sales; including Curatio) worth of highly profitable branded formulation sales spread across India, Brazil and RoW markets. In the near term, Curatio acquisition will increase TRP’s net debt and we see this acquisition as EPS dilutive. Historically TRP have managed to integrate successfully Unichem and Elder acquisition which gives us comfort. We expect 18% EBITDA and 19% EPS CAGR over FY22-25E.
We maintain our estimates and ‘BUY’ rating with TP of Rs 1,850/share, 17x EV/EBITDA to Sept 2024E.