Sharekhan has given Buy recommendation for Torrent Pharmaceuticals with a target price of Rs. 1820 in its research report issued on Oct 25, 2022
Sharekhan’s research report on Torrent Pharmaceuticals
Torrent Pharmaceuticals Limited (Torrent) reported soft performance in Q2FY2023 but medium-term outlook is improving with healthy outlook from India and Brazil business, while Germany business is expected to recover in H2FY2023. Revenue grew by 7% y-o-y, driven by 13% and 19% y-o-y growth in India and Brazil business, respectively; OPM fell 125 bps y-o-y to 29.6%; PAT stood flat at Rs. 312 crore. India business likely to grow by 13-14%, Brazil business to grow by 19-20%, and Germany to see sequential recovery in the quarters ahead. OPM is likely to remain at ~30%.
Given better growth prospects across India and Brazil businesses, we retain Buy with an unchanged PT of Rs. 1,820.