Torrent Pharma’s share price surged over 8% to a 52-week high on Monday following the company’s robust Q4 results. On Friday, Torrent Pharma reported a 56.45% rise in net profit to ₹449 crore for the March quarter, driven by higher revenue. The company’s revenue for Q4 FY24 increased to ₹2,745 crore, up from ₹2,491 crore in the same period last year.
Key Highlights:
- India: Revenue increased by 10% to ₹1,380 crore.
- Brazil: Revenue grew by 17% to ₹372 crore.
- Germany: Revenue increased by 11% to ₹280 crore.
- US: Revenue decreased by 6% to ₹262 crore.
Torrent Pharma’s board has recommended a final dividend of ₹6 per share, subject to shareholder approval. Additionally, the company plans to raise up to ₹5,000 crore through the issuance of equity shares, including convertible bonds and debentures, pending shareholder consent.
The stock opened at an intraday high of ₹2,839.90 on the BSE. According to Rajesh Bhosale from Angel One, the stock prices saw a strong opening above the previous session’s high, with prices up 4% in the morning session. He noted strong trading volumes and expects the uptrend to continue. The stock recently faced resistance at ₹2,750, but a break above this level could push it towards ₹2,900, with support around ₹2,650.
Ruchit Jain from 5paisa added that the stock had been consolidating within a range for the past three months but remained above the 100-day moving average support. A close above ₹2,750 could resume the uptrend, with immediate support levels at ₹2,600 and ₹2,530.
Is It the Right Time to Invest?
Nuvama Institutional Equities:
Despite challenges in the RoW and US business, Torrent Pharma’s Q4FY24 results met expectations. The company’s EBITDA margin reached 32.2%, the highest in eight years, with 73% of sales from branded generics. Management expects strong performance in FY25, with continued double-digit growth in Brazil and India and an 8% YoY increase in Germany due to new launches. US growth is expected from recent launches and compliance restoration at the Dahej facility. Nuvama projects a 32% CAGR in EBITDA margin and PAT growth over FY24–FY26, maintaining a ‘BUY’ rating with a target price of ₹3,000.
Antique Stock Broking:
The brokerage noted a 10% sales increase year-over-year, driven by price hikes, top brand growth, new products, and the consumer health portfolio. Brazil’s exports grew 11% YoY in CC terms due to new product launches and higher volumes in premium brands. Germany saw an 11% YoY growth from new tenders and improved tender conversion rates. With strong growth prospects in India and Brazil, and growing German and US formulations, Torrent Pharma’s revenue is expected to grow at a CAGR of ~13% over two years. The brokerage increased its EBITDA margin estimate to ~35% and EPS estimate for FY26 by ~10%, maintaining a ‘BUY’ rating with a target price of ₹3,244.
Overall, analysts see strong growth potential for Torrent Pharma, making it a potentially good investment opportunity.
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