Others | Pharmaceuticals
November 02, 2018
Torrent Pharmaceuticals Ltd
BUY
CMP
`1,630
Torrent Pharmaceuticals is the pharma arm of the Torrent Group. The company
Stock Info
specializes in cardiovascular, diabetes and central nervous system (CNS).
Sector
Pharmaceuticals
Chronic and sub-chronic therapies form 75% of the portfolio (52% of Indian
Market Cap (` cr)
27,589
pharma market). Nearly 39% of the revenue is generated domestically while the
52 Week High / Low
1962/1221
rest is earned from US, Germany, Brazil and ROW markets. Torrent Pharma
Avg. Daily Volume
7,053
made 5 acquisitions since 2014. The latest one, Unichem Laboratories, helped
Face Value (`)
5
the company in elevating its position among peers to number 5 from number 13.
BSE Sensex
35,012
Torrent-Unichem integration will be completed by FY19. The company expects
Nifty
10,553
further synergies from this acquisition. It also expects ~25% growth from the US
Reuters Code
TORP.BO
market. Currently, Torrent has 51 US ANDA monetisation in the pipeline, which
Bloomberg Code
TRP IN
was just 16 in FY16. Further, it plans to launch 8-9 products in FY19. The
company has made huge investment in FY18 in capacity expansion and
acquisitions. An investment in caopex worth `2 bn is also planned for FY19,
which is expected to increase production. Revenues and profits of the company
Shareholding Pattern (%)
are growing at a healthy rate. It registered an 18.1% and 19.1% CAGR in sales
Promoters
71.3
and PAT over FY2009-18. Torrent Pharma has also delivered 3-year average
ROE of 29.4%. Hence Buy.
MF / Banks / Indian Fls
10.9
FII / NRIs / OCBs
8.1
Indian Public / Others
9.7
Abs. (%)
3m 1yr
3yr
Sensex
(5.8)
4.3
31.8
Torrent
7.1
23.0
6.0
Jaikishan Parmar
022 - 3935 7600 Ext: 6810
Please refer to important disclosures at the end of this report
1
Torrent Pharmaceuticals |Pharmaceuticals
Research Team Tel: 022 - 39357600
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Disclosure of Interest Statement
Torrent Pharmaceuticals
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
2
