Torrent Pharma hits 52-week high post Q1 nos; brokerages raise target price

Shares of Torrent Pharmaceuticals has touched 52-week high of Rs 1,651.50, rising 8.5 percent intraday Friday despite company's net profit declined in the quarter ended June 2018.

The company has reported 13.3 percent fall in its Q1FY19 net profit to Rs 163 crore versus Rs 188 crore in the same quarter last fiscal.

Meanwhile, revenue of the company rose 37 percent to Rs 1,872 crore versus Rs 1,362 crore.

The drug maker plans to launch 15 abbreviated new drug applications (ANDAs) in the US in FY19.

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Torrent Pharma bought domestic formulation business of Unichem Laboratories for Rs 3,600 crore in December 2017 and US-based generic pharmaceuticals and OTC company Bio-Pharm in January this year for an undisclosed sum.

Brokerage: Nomura | Rating: Buy | Target: Rs 1,752

Nomura has maintained buy rating on Torrent Pharma and raised target to Rs 1,752 from Rs 1,689 per share.

The research house has increased FY19/20 earnings estimates by 19%/4% as it feels that the company have enough levers to drive strong earnings growth.

Its valuation at a discount to companies with larger EBITDA contribution from India, it added.

Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 1,700

Credit Suisse has maintained outperform rating on Torrent Pharma with a target at Rs 1,700 per share.

According to broking house, Unichem turnaround faster than expected and company is targeting to achieve Unichem's cash breakeven by FY19-end.

Unichem portfolio has started growing at mid-high single digits, while it grew by 3% YoY and adjusted for GST, growth was 8-9% YoY, it said.

Brokerage: ICICI Securities | Rating: Buy | Target: Rs 1,740

ICICI Securities has maintained buy call on Torrent Pharma and raised target to Rs 1,740 from Rs 1,564 per share.

The acquisition of Unichem��s India business will help improve growth trajectory, said ICICI Securities.

It has revised revenue and PAT estimates upwards by 1-2% and 0-1% for FY19-20, it added.

At 10:01 hrs Torrent Pharmaceuticals was quoting at Rs 1,638.10, up Rs 115.40, or 7.58 percent on the BSE.

Posted by Rakesh Patil First Published on Aug 3, 2018 10:19 am