Torrent Pharma Q1 Results Review - Steady Outperformance In Branded Generics Market: Motilal Oswal

Motilal Oswal Report

Torrent Pharmaceuticals Ltd.’s Q1 FY24 financial performance was in line with our estimates. The company is making steady progress in its branded generics segment in India (domestic formulation) and Latin America. The growth outlook for the U.S. and Germany is getting better on the back of better scope of resolving regulatory issues/new tender wins.

We raise our earnings per share estimates for FY24/FY25 by 4% each, factoring in-

1. reduced intensity of price erosion in U.S. generics,

2. product launches and market share gains in LATAM, and

3. improving growth prospects in Germany.

We value Torrent Pharma at 28 times 12 months forward earnings to arrive at a target price of Rs 1,960.

Torrent Pharma remains on track to outperform in DF through price hikes, increasing reach and enhancing brand value through building a consumer healthcare franchise.

A faster pace of launches in Brazil should help Torrent Pharma sustain growth momentum. However, we maintain the 'Neutral' stance as we believe the reach valuation factors in earnings upside over the next two-three years.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.