Torrent's Sales/EBITDA/PAT stood at INR 19,240mn/5,400mn/2,510mn with revenue declining 1% YoY while EBITDA was flat and PAT grew 2%. Torrent's Revenue/EBITDA were 4%/2% down from the expectation mainly because domestic business reported a modest 5% YoY growth (~8.5% adj for discontinued brands and integration of Torrent-Unichem stockists in 3Q19).

US was range-bound and Brazil grew at an impressive 12% YoY. EU recovery likely from end-4Q and US unlikely to post negative surprise, a slowdown in the IPM is the only concern facing Torrent.

Torrent’s top-10 brands have consistently outperformed its sub-therapies and with rationalization of underperforming brands coupled with cost flexibility, Further improvement can be seen in margin profile of the business. Stock is trading at 14.5x FY22 multiple.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

Found this insight useful?

For more such insights, delivered daily in real-time for free, download the inChat app from the Play Store. Download Now!

Please share with your friends and family as well. You can also subscribe to one of our channels listed at the bottom of this page.