Torrent Pharmaceuticals Ltd. share price target

Torrent Pharma (TRP) delivered largely in line earnings in 3QFY25. The superior performance in domestic formulation (DF) was offset by currency headwinds in Brazil and zero insulin CMO sales.

Torrent’s revenue reached Rs. 2,889 crore, reflecting a 9% y-o-y increase and a 1% q-o-q rise, driven by growth in key geographies.

Torrent Pharma (TRP) delivered largely in-line 1QFY25. TRP posted robust 14.7% YoY growth in domestic formulation (DF) segment.

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.