Torrent Pharmaceuticals Ltd. share price target

Q4FY24 results were good where sales grew by 10% y-o-y (2% below our estimates), EBITDA grew by 21% y-o-y (0.8% above our estimates) and PAT grew by 56% y-o-y (10% above our estimates).

Torrent Pharma’s (Torrent) branded generics business in India, Brazil and other countries (73% of revenue) grew 18% YoY in Q2FY24. Organic growth in India was 12% vs covered market growth of 7-8%. Spillover (~INR 250mn) from Q1FY24 and new launches aided 36% YoY growth in Brazil. Barring US (-17% QoQ to USD 30mn), all other segments posted healthy growth. Launches from Dahej (in Gujarat) and new oncology plant may lift US quarterly run-rate to USD 32-35mn ahead.

Torrent’s Q1FY24 performance was boosted by the acquisition of Curatio in India, while delay in shipments derailed growth in Brazil (sales of ~INR 250mn in Q1). Organic growth in domestic branded biz is estimated at ~8-9% led by price rise and new launches.