Torrent Pharma Q4 Results Review - India/LATAM Drive Earnings: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Adding a new lever (consumer healthcare) of growth in India businessTorrent Pharma’s (TRP) 4QFY23 operational performance was marginally below our expectations due to higher opex. TRP continues to outperform the industry in the branded generics segment, with revenue growth of 12.6% YoY in FY23 and EBITDA margin gain of 130bp YoY for the segment.We trim our FY24/FY25 EPS estimates by 4%/1% to factor in 1) incremental expenses for the consumer healthcare platform, 2) a gradual revival in US sales, and 3) improved growth momentum in the LATAM business. We value TRP at 26x 12M forward earnings to arrive at a TP of INR1650.The company continues to focus on the branded generics business in its key markets of India/Brazil. The strategy of building a consumer healthcare segment in India would further enhance volume growth potential for certain established brands. While a successful resolution of compliance issues is vital for growth in US generics, it has outsourced certain products, which would aid growth in US generics to some extent. Having said this, the current valuation adequately captures the upside in earnings. Maintain Neutral..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime.Users have no license to copy, modify, or distribute the content without permission of the Original Owner

Torrent Pharma Q4 Results Review - India/LATAM Drive Earnings: Motilal Oswal

Torrent Pharma Q4 Results Review - India/LATAM Drive Earnings: Motilal Oswal

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