ICICI Securities recommended hold rating on Torrent Pharmaceuticals with a target price of Rs 2574 in its research report dated May 27, 2020.
ICICI Securities research report on Torrent Pharmaceuticals
Torrent Pharma’s (Torrent) Q4FY20 performance was largely in-line with estimates aided by strong India growth and controlled costs. Consolidated revenue grew 4.8% YoY and EBITDA margin improved 270/70bps YoY/QoQ to 28.2% (I-Sec: 26.8%). Adjusted PAT more than doubled to Rs2.6bn (I-Sec: Rs2.2bn) driven by better margin and lower tax rate. US sales remained flat QoQ at US$52mn vs estimated US$51mn despite the company having OAI status on two important plants and no new approvals.
Outlook
The growth in India business was strong at 11.4%, recovered well after three quarters of single digit growth as high base normalised and volume growth improved from recent launches including Ticagrelor, Vildagliptin, Remogliflozin etc. Maintain HOLD.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More
