Torrent Pharma share price gives up early gains, falls over 2% after Q2 results; should you buy?

livemint.com:

Torrent Pharmaceuticals share price gave up early gains to trade over 2% lower on Wednesday after the company reported a strong rise in its net profit and revenue for the second quarter of FY24. Torrent Pharma declined as much as 2.74% to ₹1,822.80 apiece on the BSE. The pharma company posted a consolidated net profit of ₹386 crore for the September quarter, up 24% from a year ago, while its revenue rose by 16% to ₹2,660 crore from ₹2,291 crore a year earlier.

Torrent Pharma’s earnings before interest, taxes, depreciation and amortization (EBITDA) was at ₹825 crore, while EBITDA margin was at 32% in Q2FY24. The company focusing on specialty drugs reported 18% growth in its Indian operations in Q2, with revenues rising to ₹1,444 crore from ₹1,224 crore, YoY. Read here: Torrent Pharma net profit up 24% to ₹386 cr in Q2 Here’s what brokerages have to say about Torrent Pharmaceuticals Q2 results and share price: According to Motilal Oswal Financial Services, Torrent Pharmaceuticals remains on track for superior execution in the branded generics market (DF & Brazil).

It is further scaling up additional levers of growth (trade generics and consumer healthcare) in India. With new launches and increased field force, it is well positioned to sustain growth momentum in Brazil. “While US generics base business continues to witness price erosion, new approvals would drive growth prospects.

Considering these factors, we expect 14%/19%/34% sales/EBITDA/ PAT CAGR over FY23-25 to ₹124 billion / ₹40 billion / ₹22 billion," said the brokerage firm. It reduced its FY24 earnings estimate by 4% to factor in higher interest cost and moderation in the US generics business. It maintained earnings estimates for FY25.