Torrent Pharmaceuticals share price: Buy Torrent Pharmaceuticals, target price Rs 3226: ICICI Securities

has a call to buy on Torrent Pharmaceuticals with a target price of Rs 3226. The current market price is Rs 2850.95. The period given by the analyst is one year when . the price can reach the set target.

Torrent Pharmaceuticals Ltd., incorporated in 1972, is a large capitalization company (having a market capitalization of Rs 47840.11 Crore) operating in the pharmaceutical sector.

The main products/revenue segments of Torrent Pharmaceuticals Ltd. include pharmaceuticals, other operating income and export incentives for the year ending March 31, 2021.


For the quarter ended 31-03-2022, the company reported consolidated total revenue of Rs 2187.00 Crore, up 1.44% from last quarter, total revenue of Rs 2156.00 Crore and up up 10.68% from the same quarter last year, total revenue of Rs 1976.00 Crore. The company reported a net profit after tax of Rs -118.00 Crore last quarter.


Investment rationale
Torrent Pharma (Torrent) performance at T4FY22 was above estimates for all metrics. Revenue increased 10% year-on-year to Rs 21.3 billion (I-Sec: Rs 20.3 billion) driven by 12.1% growth in India. U.S. sales increased 19.4% quarter-on-quarter to $37 million from an estimated $29 million. EBITDA margin decreased by 370 basis points year-on-year to 26.3% due to a low gross margin. Torrent reported an impairment charge of Rs 4.39 billion for the shutdown of the liquid facility in the United States. Adjusted PAT decreased by 24.2% to 2.5 billion rupees (I-Sec: 2.2 billion rupees). He remains positive on Torrent given his strong national franchise backed by a dominant chronicle segment. Given the share price correction (~14% in the last 6 months), it is moving to BUY from Hold with a revised target price of Rs3,226/share (previously: Rs3,134/share).

Promoter/Fii Holdings
The promoters held 71.25% of the company’s capital as of March 31, 2022, while the FIIs held 13.05% and the DIIs 7.56%.

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