Torrent Pharmaceuticals Ltd.

NSE: TORNTPHARM | BSE: 500420 | ISIN: INE685A01028 | Industry: Pharmaceuticals
| Expensive Performer
3297.3000 27.20 (0.83%)
NSE May 07, 2025 12:44 PM
Volume: 110.1K
 

3297.30
0.83%
HDFC Securities
While we remain constructive of TRP's domestic business owing to a strong presence in specialty chronic therapies, the slowdown in the US will limit revenue growth to low double digits (~12%) over FY19-21E. With the WL on Dahej, pending approvals in the US will get delayed, thus leaving margin expansion in check (+30bps to 26.2%). The mainstay domestic business will enable yearly FCF of Rs 13bn+ and net debt to drop by ~Rs 20bn over FY19-21E, aiding ~30% EPS CAGR over the period. With the update on Indrad expected soon, we remain cautious on the stock and would suggest entering post a favourable outcome. We maintain NEUTRAL on TRP following an in-line quarter. The domestic business enabled healthy growth in revenue and profitability. Yet, the slowdown in the US will continue for 2-3 quarters. We cut our estimates by ~5% owing to the WL for Dahej and await an update on Indrad. At 24x FY21E EPS, we arrive at a TP of Rs 1,615.
Torrent Pharmaceutic.. has an average target of 3522.40 from 6 brokers.
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