Buy Torrent Pharmaceuticals, target price Rs 1788: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Torrent Pharmaceuticals with a target price of Rs 1788. The current market price of Torrent Pharmaceuticals is Rs 1547.7.

Torrent Pharmaceuticals, incorporated in the year 1972, is a Large Cap company (having a market cap of Rs 52381.20 Crore) operating in Pharmaceuticals sector.

Torrent Pharmaceuticals key Products/Revenue Segments include Pharmaceuticals, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2481.00 Crore, up 7.54 % from last quarter Total Income of Rs 2307.00 Crore and up 15.07 % from last year same quarter Total Income of Rs 2156.00 Crore. Company has reported net profit after tax of Rs 283.00 Crore in latest quarter.

The company’s top management includes Mr.Sudhir Mehta, Mr.Manish Mahendra Choksi, Mr.Jinesh Shah, Dr.Maurice Chagnaud, Ms.Nayantara Bali, Ms.Ameera Shah, Mr.Haigreve Khaitan, Mr.Shailesh Haribhakti, Mr.Samir Mehta, Mr.Aman Samir Mehta. Company has BSR & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 34 Crore shares outstanding.

Investment Rationale
Torrent Pharma’s domestic average sales growth for the months of January and February (13.5%) has been above average market (Indian Pharma Market – IPM) growth (11.3%) for the same months, indicative of run rate for the company for Q4FY23E. On a moving annual total(MAT) basis, the company’s sales growth was at 15.5% for Feb 2023 vs. 8.2% for IPM. The sales growth beat over IPM is likely to be driven by new product launches, performance of its top brands, strong growth in its newly acquired Curatio’s portfolio, recent expansion of its field force and increase in their productivity.

Promoter/FII Holdings
Promoters held 71.25 per cent stake in the company as of 31-Dec-2022, while FIIs owned 12.09 per cent, DIIs 8.77 per cent.