ICICI Securities research report on Torrent Pharma
Torrent Pharma’s (Torrent) dominance in cardio-diabetes therapies, coupled with its varied portfolio and a dedicated field force, has helped the company garner 34–35% volume market share in GLP-1 in India. Growth in the ex-GLP-1 portfolio in its India business continues to be boosted by price increase (6–7%) and new launches. Management expects its India business to outpace IPM’s current growth of ~10–12% by 250–400bps. New launches in Brazil could add a 10–15% growth delta in constant currency terms; also, semaglutide’s potential launch next year, could be a further fillip. The JB Pharma merger is slated to be completed in Jul’26. Management envisages realising cost synergies of ~INR 4–4.5bn over the next three years.
Outlook
We raise FY27E/FY28E EBITDA by ~1% each, baking in better traction in India and Brazil. Maintain HOLD; TP revised to INR 4,800 (INR 4,600 earlier) based on 25x FY28E EV/EBITDA (24x earlier).
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Torrent Pharma - 0107026 - icici