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JP Morgan upgrades Torrent Pharma to 'Overweight', lifts target; stk up 5%
Around 1:35 PM, Torrent Pharma share price was trading 2.12 per cent higher at ₹3,294.05 per share. In comparison, BSE Sensex was trading 0.28 per cent higher at 83,991.38 levels.
Why did Torrent Pharma share price jump in trade today?
Torrent Pharma share price rose after JPMorgan reportedly upgraded the company to 'Overweight'. The brokerage also hiked the target price to ₹3,800, from ₹3,650 earlier. The new target price reflects an upside of 17.8 per cent from its previous close of ₹3,225.70.
JPMorgan anticipates Torrent's India operations will continue to be a major growth engine, driven by sustained momentum in its core segments, according to reports.
Torrent Pharma Q4 results
Torrent Pharma reported an 11 per cent year-on-year (Y-o-Y) increase in consolidated profit after tax (PAT) for the fourth quarter of FY25, at ₹498 crore. The growth was primarily driven by robust performance in its India operations. Revenue for the quarter rose 8 per cent to ₹2,959 crore.
Excluding exceptional items related to the resolution of legacy Drug Price Control Order (DPCO) litigations, PAT growth stood at 15 per cent for the quarter.
During FY25, the company declared an interim dividend of ₹26 per equity share (face value ₹5) and had recommended a final dividend of ₹6 per share, subject to shareholder approval.
For the full financial year, Torrent Pharma posted a 7 per cent rise in revenue to ₹11,516 crore, while PAT climbed 15 per cent to ₹1,911 crore.
India remained the company's largest market, contributing around 52 per cent to overall revenue. India sales rose 12 per cent in Q4 to ₹1,545 crore, outpacing the domestic market's 8 per cent growth. The chronic segment expanded by 14 per cent, compared to the market's 9 per cent growth. For the full year, India revenues rose 13 per cent to ₹6,393 crore.
Nuvama on Torrent Pharma's Q4 show
According to Nuvama, Torrent Pharma marginally missed Q4FY25E consensus revenue estimates by 1 per cent, but reported an adjusted Ebitda in line with expectations. Adjusted PAT, however, surpassed consensus by 2 per cent. The adjusted Ebitda margin stood at 33.4 per cent, exceeding estimates by approximately 60 basis points.
India and US markets grew robustly by 12 per cent and 9 per cent Y-o-Y in constant currency terms, respectively, while Brazil posted a 5 per cent Y-o-Y growth on a constant currency basis.
Torrent Pharma is set to expand its sales force by approximately 1,200 medical representatives over FY24–26E, which is expected to support double-digit growth over the next three to five years. Additionally, the upcoming semaglutide launches in India and Brazil are expected to enhance the product mix.
The US market is poised for new product launches, with growth likely to accelerate, while Germany is expected to benefit from tender wins in the latter part of FY26E. Torrent also serves as a potential hedge against structural shifts in the US pharmaceutical landscape.
Therefore, the brokerage maintained a 'Buy' rating on the stock with a revised target price of ₹3,760 (earlier ₹3,810).
About Torrent Pharma
Torrent Pharma, the flagship entity of the Torrent Group, is one of India's leading pharmaceutical companies with a strong focus on branded and generic formulations. The company has built a major presence across key therapeutic areas such as cardiovascular (CV), central nervous system (CNS), gastrointestinal (GI), and women's healthcare (WHC). Its robust portfolio and commitment to quality have positioned it as a trusted name in both domestic and international markets.
With operations spanning over 40 countries, Torrent Pharma has steadily expanded its global footprint through strategic acquisitions and partnerships. The company operates manufacturing facilities across India in states like Gujarat, Himachal Pradesh, Madhya Pradesh, Andhra Pradesh, and Sikkim.
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