Investment
oi-Shubham Kumar
Leading brokerage firm Sharekhan has had an idea for shares, it has been assigned a "buy" in Torrent Pharmaceuticals Ltd. with a price target of Rs 1,788 per share. The stock is likely to rise, giving upside potential as high as 19%. These are large-cap pharmaceutical stocks with a market capitalization of Rs 51,198.33 crore.
Torrent Pharma's average sales growth was 13.5% (in January and February), outpacing the 11.3% growth of the Indian Pharma Market (IPM) in the same period. On a MAT basis, sales grew 15.5% for February 2023 versus 8.2% MPI, according to Sharekhan.
Torrent Pharmaceuticals Stock Outlook
Torrent Pharmaceuticals share price on NSE is currently trading at Rs 1,516.95 per share, down 1.11% from the previous closing of Rs 1,534 per share.
The stock posted a 52-week low on May 12, 2022 at Rs 1,242.08 per share and a 52-week high on November 9, 2022 at Rs 1,750 per share respectively.
The stock has gained 0.09% in 1 week and 1.9% in 1 month, respectively. In cattle 5.06%, 59.46% in 3 years and 140.68% in 5 years respectively.
Sales in India remain ahead of the market trend
According to Sharekha, the average growth of Torrent Pharma's domestic sales during the months of January and February (13.5%) has been above the average growth of the market (Indian Pharma Market - IPM) (11.3%) during the same months, indicative of the rate of execution of the company. for Q4FY23E. On a rolling annual total (MAT) basis, company sales growth was 15.5% in February 2023 versus 8.2% for IPM. Sales growth outpacing that of IPM is likely to be driven by new product launches, the performance of its core brands, strong growth in the newly acquired Curatio portfolio, the recent expansion of its field force and increased of your productivity.
Buy for a target price of Rs 1,788/share
Sharekhan, "Torrent Pharma's growth run rate in the fourth quarter of fiscal year 2020 (per AIOCD) as indicated by IPM average sales growth from January 23 and February 23, is in line with our estimate.Therefore, we maintain our overall revenue and earnings growth estimates at 12.3% and 19.5% CAGR, respectively over FY2022-FY2025E.In CMP, shares are trading at 31.3x/24.5x their FY24E/FY25E EPS , respectively. We are holding Buy on Torrent Pharma with an unchanged PT of Rs. 1788."
According to Sharekhan, the key to the "buy" call would be Risks Delays in resolving USFDA issues at its plants and increased competitive pressures in the US.
Disclaimer
The stock has been selected from Sharekhan's brokerage report. Greynium Information Technologies, the author and the respective brokerage firm are not responsible for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decisions.
Story first published: Monday, March 20, 2023 12:58 PM [IST]
