Torrent Pharma Q1 Results Review - India Growth Picking-Up Pace: ICICI Securities

ICICI Securities Report

Torrent Pharmaceuticals Ltd.’s Q1 FY25 result was driven by robust 14.7% YoY growth in India business. Price increases (6-8% annually) continue to be the driving factor for growth in India while efforts for boosting volume growth are underway as Torrent plans to add 300-400 MRs in India every year.

Floods in Rio Grande do Sul restricted growth in Brazil to 3% YoY else the performance would have been better; management expects 12-13% YoY constant currency growth in FY25.

In Germany, new tender wins are driving growth momentum while new launches may improve traction in U.S. ahead. We raise our FY25/26E Ebitda by ~2% each to factor in better margins.

As the stock has given a return of ~19% over the past three months, we lower our rating to Add; raise target price to Rs 3,360 on 25 times FY26E enterprise value/Ebitda.

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