Brokerages raise Torrent Pharma target price post Q4 results

MUMBAI: Brokerage continue to remain bullish on Torrent Pharma after its strong set of number for quarter ended March 2014. They have increased the EPS estimates for the stock and raised the target price with it.

The company reported 120 per cent surge in consolidated net profit to Rs 244 crore against a net profit of Rs 111 crore in the corresponding quarter last fiscal.

Net income from operations grew to Rs 1225 crore, up 40.6 per cent, from Rs 871 crore in the same quarter last fiscal.

It has recommended a dividend of Rs 5 per share.

Torrent Pharma’s domestic formulation business grew 17 percent to Rs 256 crore, while international revenue rose 69 percent to Rs 887 crore.

ICICI Securities is of the view that the results beat estimates on Cymbalta and India sales. The brokerage has raised FY15 – 16 EPS by 13.5 per cent and 10.4 per cent respectively.

It has increased its target price to Rs 754 from Rs 592 earlier.

According to Edelweiss, strong Cymbalta sales and better core business helped the company to post good Q4 results.

The management expects to close Elder deal over next few weeks and that should also help the company.

It has increased target price to Rs 630 from Rs 565 earlier after raising EPS by 7 – 13 per cent from FY15 – 16.

At 10:50 a.m.; the stock was at Rs 658.75, up 5.33 per cent, on the BSE. It touched a high of Rs 676 and a low of Rs 654 in trade today.