Following fourth quarter earnings, Nuvama and Prabhudas Lilladher have a 'buy' rating on the stock, Kotak Institutional Equities recommended a 'downgrade' while Motilal Oswal has taken a 'neutral' view over the counter.
torrent pharma on Tuesday reported a consolidated profit after tax (PAT) of Rs 287 crore for the fourth quarter ending March 2023, thanks to strong sales across all geographies. The drug maker had reported a net loss of Rs 118 crore in the January-March quarter of fiscal year 2021-22.
The company's revenue rose to Rs 2,491 crore in the fourth quarter compared to Rs 2,131 crore in the same period a year earlier.
The board also approved a final dividend of Rs 8 per share at Rs 5 each.
This is what the brokerage firms recommend:
Kotak Institutional Stock: Reduce | Target: 1,645 rupees
Kotak maintained a "down" rating on Torrent Pharma shares with a Rs 1,645 price target.
โIndia and Brazil in good condition. TRP reported a 4QFY23 operationally in line, even as lower other revenue and higher financial costs led to a 12% PAT loss,โ she said.
โBranded markets remain the mainstay for TRP and continue to drive overall performance, with a sales contribution of over 70% and a much higher EBITDA contribution,โ he added.
Motilal Oswal: Neutral | Target: 1,650 rupees
The national brokerage cut its FY24/FY25 EPS estimates by 4%/1% to account for 1) incremental spending for the consumer healthcare platform, 2) a gradual revival of US sales. and 3) enhanced growth momentum in the LATAM business.
โWe price TRP at 26x 12M future earnings to reach a target price of Rs 1,650,โ he said.
Nuvama: Buy | Target: 1,980 rupees
Nuvama retained a 'buy' rating for a Rs 1,980 price target. โWe are keeping our FY24E/FY25E EPS unchanged, and increasing our multiple to 30x (from 27x) due to growth headroom/inside margin, yielding a target of Rs 1,980,โ he said.
โTorrent Pharma (TRP) revenue/EBITDA was in line with consensus, led by Brazil (+17% yoy) and a stable India (+15% yoy ex-Curatio). Key risk: high OTC spending,โ she added.
Prabhudas Lilladher: Buy | Target: 1,900 rupees
Prabhudas maintained a 'buy' rating with a revised price target of Rs 1,900 (previous Rs 1,820), which is 17x EV/EBITDA for FY25E.
โTorrent Pharma (TRP) 4QFY23 EBITDA was largely in line, however PAT was below our estimate due to higher taxes and one-time inventory write-offs,โ it said.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are my own. These do not represent the views of Economic Times)
