Torrent Pharmaceuticals Ltd. share price target

Revenue rose by 9.17% to Rs. 1834.0 Cr in Q1FY19 when compared to the previous quarter. Torrent Pharmaceuticals Ltd Q1FY19 results Comment

Downgrade the stock to Neutral with a revised TP of Rs 1,540 (22x FY20E EPS). Benefitted from a favourable base and the acquisition of Unichems India portfolio, TRPs 1QFY19 revenues grew 37%YoY to Rs 18.7bn and EBITDA was up 60%YoY to Rs 4.7bn with EBITDA margin at 25.5%, up 370bps YoY. Numbers were in line with our estimates, except lower other income which led to 13%YoY decline in PAT at Rs 1.6bn.

Torrent Pharma(Torrent) Q1FY19 results were a mix, topline 4.6% above our estimates while PAT was 5.2% lower. Sales grew by 37.4% YoY to Rs18.7bn(est. of Rs17.9bn) driven by beat numbers across all regions especially India. EBITDA margins were at 25.5% (est. of 23.7%) up QoQ from 21.1% given better sales mix with ~70% contributed by chronic and sub-chronic portfolio. Unichem portfolio has started contributing better than our expectations. PAT was down 19.3% YoY, 5.2% below our estimates at...

ICICI Securities Ltd | Retail Equity Research Revenues grew 36.2% YoY to | 1872 crore (I-direct estimate: | 1895.5 crore) mainly due to 78.9% YoY growth in Indian formulations to | 830 crore (I-direct estimate: | 824.9 crore) led by lower base, consolidation of Unichem India & Nepal businesses. US business grew 22.8% YoY to | 334 crore (I-direct estimate: | 343.8 crore) EBITDA margins improved 387 bps YoY to 25.5% YoY (I-direct estimate: 24.5%) mainly due to lower other expenditure. EBITDA...

2 August 2018 low base, (b) addition of the Unichem portfolio in the domestic formulation (DF) business, (c) volume-driven growth in the US and (d) new launches in Germany. However, EBITDA margin expanded 390bp YoY to rationalization. EBITDA grew 60% YoY to INR4.8b. However, increased depreciation and interest cost led to a PAT decline of 13.3% YoY to INR1.6b. DF segment (44% of sales) grew 79% YoY in 1QFY19. Ex-Unichem and adjusting for GST-led disruption in 1QFY18, DF growth was at 9.1% YoY. US business (18% of sales) grew 23% YoY, led by volume growth, addition of the bio-pharma business and INR depreciation. Germany business (13% of sales) grew 32% YoY, led by new launches and better traction in existing molecules. Brazil business (-7% YoY) dragged revenue growth due to temporary stoppage of sales of one brand and intensifying competition in some brands.

Maintain BUY with a revised TP of Rs 1,584 (22x FY20E EPS). After the acquisition of Unichems domestic business, Torrent Pharma (TRP) has become the fifth largest pharmaceutical company in India. This was TRPs first result with the entire three months revenues of Unichem India portfolio. Top line grew 20%YoY to Rs 17.2bn, EBITDA Margin came in at 21.1% and PAT was up by 11%YoY.

ICICI Securities Ltd | Retail Equity Research Revenues grew 20.1% YoY to | 1722 crore (I-direct estimate: | 1763 crore) mainly due to 48.4% YoY growth in Indian formulations to | 693 crore (I-direct estimate: | 733 crore) led by consolidation of the Unichem India and Nepal businesses EBITDA margins improved 57 bps YoY to 21.1% YoY (I-direct estimate: 24.5%). Improvement in gross margins (73.1% vs 65.8% in Q4FY18) was largely offset by higher other expenditure. EBITDA...

TRPs sales grew ~25% YoY to INR17.2b (est. India business grew 48.4% YoY to INR6.9b (adj. for GST, growth was ~54%), including the acquisition of Unichem. EBITDA rose 23% YoY to INR3.6b (est. of INR4.1b), with the margin at 21.1% (-20bp YoY, - 310bp QoQ). The QoQ contraction in the margin is mainly due to one-time expense of INR500m, adjusted for which 30 May 2018 the margin stood at ~24%.

Subdued quarter; Unichem acquisition to help improve market standing Torrent Pharmaceuticals Ltd (Torrent) manufactures and markets branded & unbranded generic pharmaceutical products within and outside India. It is a dominant player in the...

ff India Biz (40% of Sales): TRP's domestic business grew by 16.5% YoY, which adjusted for Unichem acquisition and GST roll-out related changes, grew by 13% YoY. During 3QFY18, TRP booked Unichem sales from 14th to 31st Dec-17, as part of its domestic business. As per management, sales growth of the acquired business is still slow due to integration with TRP. Further, despite re-stocking post GST roll-out, inventory is yet to match pre-GST level (14 days vs. 21 days). Led by Unichem acquisition, product overlap stood at ~70% while doctor overlap at ~90%. TRP expects any cost synergies driven by the overlaps to be limited due to higher rural penetration of Unichem's products (70% vs. 30% of TRP). The Management...