27 January 2020 Torrent Pharma (TRP) has exhibited a robust 23% CAGR (FY14-19) in domestic formulation (DF) sales, executing well both organically and inorganically. However, this benefit is getting offset to some extent by the ongoing regulatory issues at its Dahej/Indrad sites for the US generics business. We maintain our EPS estimate for FY20/21/22 to factor in better operating leverage in DF and increased market share in US generics. Maintain Neutral given the limited upside from current levels. India business (INR8.7b) grew by a moderate 4.3% (partly due to a high base of past year). Adjusting for one-offs due to the integration of TRP and Unichems stockists, India business growth stands at 8.5% YoY. Brazil business was up 12.5% YoY at INR1.9b. US business was down 22% YoY to INR3.