Torrent Pharma Q3 Results : PL Capital Recommends 'Accumulate' On The Stock, Hikes Target Price — Here's Why

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PL Capital Report

Torrent Pharmaceuticals Ltd.’s Q3 FY25 Ebitda missed our estimates however PAT was largely in line. Our FY26/ FY27E Ebitda broadly remains unchanged. Torrent Pharma reported Rs 80 billion (75% of total sales) worth of highly profitable branded formulation sales spread across India, Brazil and RoW markets.

Curatio acquisition has been scaling up well with sharp margin improvement since acquisition. We expect 16% Ebitda CAGR and 29% PAT CAGR over FY25-27E with healthy RoE of +30%.

At current market price, stock is trading at 21.5x EV/Ebitda/34x P/E on FY27E. We recommend Accumulate with revised target price of Rs 3,750/share as we roll forward, valuing at 25x EV/Ebitda on FY27E. Torrent Pharma continues to explore inorganic opportunities which will be key for stock performance.

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