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.
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