Torrent Pharma (TRP) delivered in-line 1QFY23 performance. Healthy growth in domestic formulation (DF)/Brazil was offset to some extent by weak show in Germany and the US generics. While TRP intends to file ANDAs for the US market, successful resolution of the USFDA issues remains the key for business improvement in the US. We have maintained our EPS estimates for FY23/FY24. We continue to value the stock at 26x 12M forward earnings to arrive at our TP of INR1,510. While TRP continues to deli...
TORRENT PHARMACEUTICALS (IN), a company active in the Pharmaceuticals industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, defensive market behaviour. The title leverages a more favourable environment and raises its general evaluation to Positive. As of the analysis date March 18, 2022, the closing price was INR 2,874.60 and its potential was...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
A director at Torrent Pharmaceuticals Ltd bought 6,875 shares at 2,899.912INR and the significance rating of the trade was 82/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last t...
Q3FY20 result highlights Revs (Ex-OOI) at Rs19.2bn (-4%yoy) were below est of Rs20.6bn. OOI came at Rs420m (est of Rs400m). India revs came at Rs8.7bn vs est of Rs9.2bn– 4.3% reported basis; Mgt cited growth was ~8.5% adj for increased revs in base qtr owing to Unichem integration. US revs came at $53.5m ($54m in Q2) inline with est. Brazil came above est but Germany came below est due to backlog in product releases (supply disruption). RoW grew 18% yoy to Rs2bn inline with est EBITDA stoo...
Torrent Pharma: India/RoW steady; low interest cost supports earnings (TRP IN, Mkt Cap USD4.8b, CMP INR2027, TP INR1930, 5% Downside, Neutral) Strong domestic play; US growth hinged on regulatory clearance Torrent Pharma (TRP) has exhibited a robust 23% CAGR (FY14-19) in domestic formulation (DF) sales, executing well both organically and inorganically. However, this benefit is getting offset to some extent by the ongoing regulatory issues at its Dahej/Indrad sites for the US generics bu...
EM Pullback Opportunity Supporting our global bull market thesis, uptrends remain intact for the major global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM). At this point, concerns surrounding the Wuhan coronavirus have led to some market setbacks and deterioration in market indicators, however they have not resulted in breakdowns. This is true even for areas of the market most-directly affected, including China (MSCI China) and emerging markets (MSCI EM). For these reasons and, as long as ther...
Q2FY20 result highlights Revs (Ex-OOI) at Rs19.7bn (+6%yoy) were below est of Rs20.3bn. OOI came at Rs370m (est of Rs400m). India revs came at Rs9bn vs est of Rs9.2bn– 10% reported basis; Mgt cited growth was ~13% adj or product divestment (2% impact) and truncation of sales recognition period (1%). US revs came at $54m ($54m in Q1) inline with est. Brazil and Germany came largely inline with est. RoW grew 18% yoy to Rs2bn vs est Rs1.8bn EBITDA stood at Rs5.4bn below est of Rs5.7bn. EBITDA...
Q1FY20 result highlights Revs (Ex-OOI) at Rs19.8bn (+8%yoy) were ahead of est Rs19.4bn. OOI came at Rs460m (est of Rs340m). India revs came in-line at Rs9.07bn– 9% reported basis; Mgt suggested that growth was ~13% adjusted for product divestment and truncation of sales recognition period. US revs came at $54m ($52m in Q4) vs est $42m – key positive surprise given the challenges in the business. Brazil, Germany and ROW came largely inline with est. EBITDA stood at Rs5.4bn above est of Rs5....
TORRENT PHARMACEUTICALS: Superior product mix and low base drive earnings (TRP IN, Mkt Cap USD3.6b, CMP INR1469, TP INR1480, 1% Upside, Neutral) Revenue growth driven by India/US businesses: Revenue increased 8% YoY to INR20.2b (our estimate: INR20.4b). US revenue increased 11% YoY to USD54m (+13% YoY to INR3.8b), supported by new launches and restart of Losartan sales. India revenue grew moderately by 9% YoY to INR9.1b. However, Germany (+4% YoY to INR2.6b) and Brazil (-3% YoY to INR1.7b...
MOSL: TORRENT PHARMACEUTICALS (Buy): Pain points evident across geographies-success in course correction key (TRP IN, Mkt Cap USD3.9b, CMP INR1601, TP INR1500, 6% Downside, Neutral) Sales growth subdued: Sales increased 8% YoY to INR18.5b (our estimate: INR21.1b) in 4QFY19, supported by the US (+21% YoY to INR3.7b; +11% YoY to USD52m in USD terms) and India (DF; +9% YoY to INR7.5b) businesses. However, Germany (+2% YoY to INR2.3b) and Brazil (-4% YoY to INR2b) businesses exhibited a muted...
TORRENT PHARMA: Strong CAPA required to overcome issues raised in recent 483s (TRP IN, Mkt Cap USD4.3b, CMP INR1755, TP INR1660, 5% Downside, Neutral) We reviewed the recent 483s issued to Torrent Pharma (TRP) for its Indrad and Dahej sites during the Mar-Apr'19 USFDA inspections. The observation related to the out-of-specification (OOS) investigation has been highlighted in both 483s. Notably, there has been a mention of 'repeat observation' in the Dahej 483. We believe that TRP will ...
Torrent Pharmaceuticals: Characterized by sustained DF traction, robust US biz growth (TRP IN, Mkt Cap USD4.4b, CMP INR1852, TP INR1660, 10% Downside, Neutral) In-line performance: Revenue grew 35% YoY to INR19.9b (our estimate: INR20.1b) in 3QFY19, largely driven by the addition of Unichem’s portfolio and robust growth in the US business. Gross margin shrank ~270bp YoY (-30bp QoQ) to 70.2% due to a change in the product mix. However, EBITDA margin expanded ~220bp YoY to 26.5%, driven by ...
Q2FY19 result highlights Rev at Rs18.9bn (+33%/1% yoy/qoq) broadly inline vs est Rs19bn. India stood lower at Rs8.16bn (-2% qoq) vs est of Rs8.3bn aided by Unichem consolidation. Ex Unichem sales was flat yoy (+33% yoy in Q1) US reported higher sales at Rs3.9bn (+18% qoq; est Rs3.5bn) aided by the BioPharma acquisition. Brazil came in lower at Rs1.47bn (est Rs1.8b) while RoW stood higher at Rs1.67bn (24% qoq) vs est of Rs1.35bn. EBITDA stood lower at Rs4.7bn (-1% qoq) vs est Rs5.1bn. Margin...
Q2FY19 result highlights Rev at Rs18.9bn (+33%/1% yoy/qoq) broadly inline vs est Rs19bn. India stood lower at Rs8.16bn (-2% qoq) vs est of Rs8.3bn aided by Unichem consolidation. Ex Unichem sales was flat yoy (+33% yoy in Q1) US reported higher sales at Rs3.9bn (+18% qoq; est Rs3.5bn) aided by the BioPharma acquisition. Brazil came in lower at Rs1.47bn (est Rs1.8b) while RoW stood higher at Rs1.67bn (24% qoq) vs est of Rs1.35bn. EBITDA stood lower at Rs4.7bn (-1% qoq) vs est Rs5.1bn. Margin...
Q1FY19 result highlights Rev at Rs18.7bn (+36%/8% yoy/qoq) came higher vs est Rs18.1bn. India came ahead at Rs8.3bn (+79%; LTL 55%) vs est of Rs7.8bn growth aided by Unichem consolidation. Ex Unichem, sales grew +33%yoy US reported higher sales at Rs3.3bn (+9% qoq; est Rs3.2bn) aided by the BioPharma acquisition. Brazil came in lower at Rs1.69bn (est Rs2.08b). EBITDA was higher at Rs4.8bn (+31% qoq) vs est of Rs4.4bn. EBITDA margins of 25.5% vs est of 24.3% aided by lower other expenses at ...
Torrent Pharmaceuticals: Turnaround of acquired business on track; better outlook for US market (TRP IN, Mkt Cap USD3.8b, CMP INR1523, TP INR1430, 6% Downside, Neutral) Improved operating margin offset by interest cost and depreciation: TRP's revenue increased 36% YoY to INR18.7b (our estimate: INR18b), led by (a) a low base, (b) addition of the Unichem portfolio in the domestic formulation (DF) business, (c) volume-driven growth in the US and (d) new launches in Germany. Gross margin sh...
Q4FY18 result highlights Rev at Rs17.2bn (+20%/17% yoy/qoq) came higher vs est Rs16.4bn. India came ahead at Rs6.9bn (+48%; LTL 54%) vs est of 45% growth aided by Unichem consolidation. Ex Unichem, sales grew +11% / +8% for the Q4 / FY18. LTL sales growth was 17% / 12% for the periods. US reported higher sales at Rs3.07bn (+15% qoq; est Rs2.6bn) aided by the BiPharma acquisition. Brazil came in lower at Rs2.15bn (flat yoy; est Rs2.3b). CRAMS sharply higher at 1.3bn (+115% qoq) vs est of Rs7...
Torrent Pharmaceuticals: Margins impacted by one-off sequentially; Unichem integration to drive growth (TRP IN, Mkt Cap USD3.6b, CMP INR1334, TP INR1350, 1% Upside, Neutral) TRP’s sales grew ~25% YoY to INR17.2b (est. of INR17.4) in 4QFY18. India business grew 48.4% YoY to INR6.9b (adj. for GST, growth was ~54%), including the acquisition of Unichem. EBITDA rose 23% YoY to INR3.6b (est. of INR4.1b), with the margin at 21.1% (-20bp YoY, - 310bp QoQ). The QoQ contraction in the margin is ma...
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