Torrent Pharma Q2 Results Review - Positive Growth Across Segments: Dolat Capital

Dolat Capital Report

Torrent Pharmaceuticals Ltd.’s Q2 FY24 earnings were largely inline with our estimates.Revenue stood at Rs 26.6 billion (inline), grew by 16.1%/2.7% YoY/QoQ.

Torrent Pharma's Ebitda stood at Rs 8.3 billion (in line), grew by 21.5%/4.3% YoY/QoQ. Ebitda margin at 31.0% (+138 basis points/+49 bps YoY/QoQ).

Branded markets showed strong growth while U.S. growth declined impacted by loss of low margin business.

Valuation

We introduce FY26 earnings and expect Ebitda compound annual growth rate of 16% over FY23-26E led by-

1. Faster than anticipated turnaround on Curatio in domestic franchise,

2. steady branded business on track with product launch momentum and

3. improved U.S. outlook with launches to commence from H2 FY24.

We roll forward our valuation to FY26E and maintain our 'Accumulate' rating with a revised target price of Rs 2,226 at 17 times FY26E enterprise value/Ebitda.

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.