NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Torrent Pharmaceuticals Ltd. (TRP) reported a stronger-than-expected 1QFY27 performance, with revenue/EBITDA/PAT beating estimates by 6%/9%/9%, respectively. The upside was driven by robust growth in domestic branded formulations and steady momentum in US generics, partly offset by subdued performance in Brazil and Germany. Currency tailwinds supported reported growth in international markets.
- Domestic formulations significantly outperformed the Indian Pharma Market by ~700bp, aided by healthy price growth, volumes and new launches. The Curatio portfolio grew 34% YoY.
- Brazil's constant-currency growth was affected by a one-time inventory reduction, though TRP continued to outperform the underlying market.
- In the US, new launches and favourable currency movements supported growth and helped the business turn profitable.
- Integration benefits from JB Chem have started materialising, with its Ebitda margin reaching ~35% in 1QFY27.
- FY27/FY28 estimates are largely unchanged. India and the US remain on healthy growth trajectories, while Germany continues to remain weak on a constant-currency basis.
- Rationalisation of JB Chem's low-margin products across domestic and international businesses could constrain near-term revenue growth.
- Ebitda margin is expected to expand by ~300bp, driving a 31% Ebitda CAGR over FY26-28E. Higher depreciation and interest costs should limit earnings CAGR to ~23%.
Torrent Pharma is valued at 50x 12-month forward earnings, implying a target price of Rs 4,730. With much of the earnings upside already reflected in valuations, the rating by Motilal Oswal Financial Services remains Neutral.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit 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 NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
