Torrent Pharma - Well-Poised To Improve Earnings Outlook: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We recently met the management of Torrent Pharmaceuticals Ltd. to understand the outlook of core segments in further details.We were enthused with Torrent Pharma’s efforts to not only scale-up, but also improve profitability of the Curatio portfolio. Apart from enhancing its presence in derma therapy, it has firmed up levers to drive better-than-industry growth in prescription-led portfolio.Following the initial success in the over-the-counter program for the India market, Torrent Pharma intends to scale up activities through new launches and marketing efforts. Torrent Pharma has also strengthened its MR force and product launches to outpace the Brazilian market and drive better margins as well.  Following the clearance of the Dahej site by U.S. Food and Drug Administration on the regulatory front, a gradual uptick in the U.S. generics business is anticipated. Compared to 10%/15%/10% sales/Ebitda/profit after tax compound annual growth rate over FY18-23, Torrent Pharma is expected to deliver 14%/18%/29% sales/Ebitda/profit after tax CAGR over FY23-26, led by 16% sales CAGR in branded generics (domestic formulation/Brazil), 11% sales CAGR in U.S. generics, and 300 basis points margin expansion. We value Torrent Pharma at 28 times 12 months forward earning to arrive at a price target of Rs 2,160. We maintain a Neutral stance on limited upside from the current levels..Click on the attachment to read the full report:.SAT Sets Aside SEBI Order Barring IIFL Securities From Onboarding Clients.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Torrent Pharma - Well-Poised To Improve Earnings Outlook: Motilal Oswal

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