Hold Torrent Pharma - Result Update First Cut - Karvy Stock Broking

(TRP IN; HOLD; Mkt Cap: US$926mn; CMP: Rs.550; TP: Rs.593; 8% Upside)

Torrent Pharma (Torrent) witnessed revenue growth of 22.1% to Rs.6966 mn higher than our estimates of Rs.6834 mn for Q3FY12. Domestic formulations grew by 7.7% y-o-y to Rs.2302 mn lower than our estimate of 12% growth for the quarter. Exports grew by 35.6% to Rs.3961 mn higher than our estimates of Rs.3775 mn. Brazil revenues grew by 27% y-o-y to Rs.1295 mn. Heumann grew by 14% to Rs.866 mn (our estimates Rs.930 mn). US business grew by 67% to Rs.636 mn (our estimates Rs.520 mn).

- EBITDA margins were down q-o-q and y-o-y to 17.4% lower than our esitmates of 18.9% mainly due to higher other expenses.

- Profits for the quarter are higher by 8.2% to Rs.832 mn. Net profit is higher by Rs.304.4 mn on account of forex adjustments.

- The stock is currently trading at 16.4X FY12 and 12.8X FY13E. We believe we may have to downgrade our estimates post earning concall on 25th Jan,2011.

Source : Equity Bulls

Keywords