Torrent Pharmaceuticals Ltd. share price target

chronic therapies and opens up many newer therapeutic areas. The deal also adds JBCP's CDMO vertical, offering diversification and growth optionality. The acquisition is likely to be debt-funded requiring Rs 122bn to fund acquisition upfront. We see JBCP current OPM of 2728% to scale to 31-32% (similar to current TRP margins) via sourcing efficiencies, cost rationalization, and pricing actions on keys brands. Historically TRP have managed to integrate...

Torrent Pharma (Torrent) is acquiring 49.2% stake in JB Pharma from KKR (46.4%) and employees (2.8%) at INR 1,600/share (aggregate value of INR 119.2bn, to be funded through debt).

Torrent Pharma (TRP) is set to acquire a controlling stake in JB Chemicals and Pharmaceuticals (JBCP). The deal is at an equity valuation of INR256b (on a fully diluted basis).

Torrent Pharma's (TRP) Q4FY25 adjusted EBITDA was broadly in line with our estimates. Our FY26/ FY27E EBITDA stands reduced marginally by 1-3%. TRP reported Rs 80bn (75% of total sales) worth of highly profitable branded formulation sales spread across India, Brazil and RoW markets. Curatio acquisition has been scaling up well with sharp margin improvement since acquisition. We expect 15% EBITDA CAGR and 27% PAT CAGR over FY25-27E with healthy RoE of +30%. At CMP, stock is trading at 22x EV/EBITDA/35x P/E...

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.