The revised price target implies a potential 18 percent upside from current levels.
Citi believes that a potential recovery in the US business could add around 7-10 percent to the company's earnings per share (EPS). However, this is not factored into the company's current valuation, which the brokerage believes to be reasonable.
Torrent Pharma's revenue mix has improved in favor of branded generics, which are now estimated at 74% in the next fiscal year, compared to 65% in fiscal 2021. The company is looking to have its core strength in chronic therapies, where growth is inherently greater. and market share, as well as prices, are sticky.
Torrent Pharma, with an annual revenue of over Rs 8,500 crore, is the flagship company of the Torrent Group.
It ranks 8th in the Indian Pharmaceutical market and is in the top five in the therapeutic segments of Cardiovascular (CV), Gastrointestinal (GI), Central Nervous System (CNS) and Nutritional Vitamin Minerals (VMN).
