Buy Torrent Pharmaceuticals, target price Rs 1853: ICICI Securities

ICICI Securities has buy call on Torrent Pharmaceuticals with a target price of Rs 1853. The current market price of Torrent Pharmaceuticals is Rs 1579.7. Time period given by analyst is one year when Torrent Pharmaceuticals Ltd. price can reach defined target.

Torrent Pharmaceuticals Ltd., incorporated in the year 1972, is a Large Cap company (having a market cap of Rs 53383.00 Crore) operating in Pharmaceuticals sector.

Torrent Pharmaceuticals Ltd. key Products/Revenue Segments include Pharmaceuticals, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 2307.00 Crore, down -2.94 % from last quarter Total Income of Rs 2377.00 Crore and up 5.44 % from last year same quarter Total Income of Rs 2188.00 Crore. Company reported net profit after tax of Rs 312.00 Crore in latest quarter.

Investment Rationale
The brokerage marginally raises revenue estimates to factor in the quarterly gyrations but cut our EBITDA estimates by ~1-2% for FY23-FY24E to factor in higher SG&A spend. It maintains BUY with a revised target price of Rs1,853/share based on 19xSep’24E EV/EBITDA (earlier: Rs1,769/share based on 19xFY24E EV/EBITDA). Key downside risks: Slowdown in domestic growth and forex volatility.

Promoter/FII Holdings
Promoters held 71.25 per cent stake in the company as of 30-Sep-2022, while FIIs owned 12.94 per cent, DIIs 9.4 per cent.