Nuvama Institutional Equities has maintained its buy rating on Torrent Pharmaceuticals with a target price of ₹3,760, citing steady Q4 performance and strong growth prospects across geographies.
While Torrent Pharma missed the consensus revenue estimate by 1% for Q4, its adjusted EBITDA was in line, and adjusted PAT surpassed expectations by 2%. The adjusted EBITDA margin came in at 33.4%, beating estimates by nearly 60 basis points.
Geographically, growth remained robust—India and the US segments expanded by 12% and 9% YoY (constant currency), respectively, while Brazil grew 5% YoY (cc). The brokerage noted that Torrent’s move to expand its sales force by 1,200 medical representatives (MRs) during FY24–26E positions the company well for sustained double-digit growth over the next three to five years.
Additionally, upcoming semaglutide launches in India and Brazil are expected to improve the overall product mix. The company also anticipates fresh US launches and a pick-up in growth, while Germany is likely to benefit from tender wins in the latter part of FY26.
Nuvama believes Torrent Pharma offers a hedge against structural changes in the US pharma market.
Current market price (CMP): ₹3,233.10
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