Pharma Stock Rallies After 24% YoY Jump In Q2, Top Brokerages Recommend Buy

Large cap pharmaceuticals sector stock, Torrent Pharmaceuticals Ltd shares witnessed a rally of 3.29% intraday after the company declared strong performance in its July-September quarter. The stellar performance in the quarterly results prompted leading brokerages like Goldman Sachs, Motilal Oswal, and HSBC assign buy call to Torrent Pharmaceuticals shares. Current market price of Torrent Pharmaceuticals stock on BSE is Rs 1934.75 per share. Torrent Pharmaceuticals stock surged 25% YTD. Check details below:

Torrent Pharmaceuticals Q2 Results: The leading Indian drugmaker posted approximately 24% surge in its Q2 profit, led by robust demand in domestic market and in Brazil. It announced its consolidated net profit at Rs 3.86 billion ($46.4 million) for the quarter ended September 30, against Rs 3.12 billion an year ago. Revenue from operations soared 16.1% to Rs 26.60 billion because sales grew 18% in India and 36% in Brazil. Meanwhile, margins on earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 31% from 30% an year ago.

Torrent Pharmaceuticals shares offered return of 18% in last 6-months, gained 25% in last 2-years, soared 41% in last 3-years, and offered return of 144% in last 5-years.

Brokerages Recommendations On Torrent Pharmaceuticals:

Goldman Sachs Gives Buy: The analyst has assigned buy call to Torrent with target price of Rs 2325 saying the company's EBITDA margin was above its estimates. Goldman predicts an over 20% EBITDA CAGR (Compounded Annual Growth Rate) for the overall business of Torrent Pharma over FY23-26. "Even as domestic market faces headwinds, all of Torrent's top brands continue to outperform," added Goldman Sachs.

HSBC Reiterates Buy Rating: HSBC appears upbeat on Torrent Pharma as it maintained buy call for Torrent Pharma shares with a target price of Rs 2,200. The analyst is positive on the drugmaker's structurally strong business profile.

Motilal Oswal Recommends Neutral Call: Motilal Oswal Financial Services Limited forecasts 14%, 19%, and 34% sales, EBITDA, and PAT CAGR for the drugmaker over FY 23-25. Motilal Oswal has maintained neutral call on Torrent Pharmaceuticals stock with target price of Rs 2050 highlighting limited upside potential from current levels.

Considering these factors, the firm predicts 14 percent, 19 percent, and 34 percent sales, EBITDA, and PAT CAGR respectively, for the drugmaker over FY23-25. However, the brokerage still chose to retain its 'neutral' recommendation on the stock with a price target of Rs 2,050, citing limited upside potential from the current levels.

Disclaimer

The stock has been picked from the brokerage report of Goldman Sachs, HSBC, and Motilal Oswal.Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.