In March 2019, the company’s unit at Dahej-used to make products for the U.S. Food and Drug Administration in October 2019, barring the company from getting fresh approvals for exporting to the American market. Torrent Pharma’s manufacturing facility at Indrad, Gujarat received a warning letter from the U.S. Also, benefits from branded generic business that contributed nearly 60% to the company’s top line worked in its favour, Pal said. Torrent Pharma’s focus on domestic market has been rewarded quite richly compared with players in the U.S market that are going through a challenging period, Surajit Pal, analyst at Prabhudas Lilladher, told BloombergQuint. That’s followed by 21% from Brazil and Germany and 19% from the U.S. The company’s India business contributed 44% to its total revenue in the financial year ended March, according to an exchange filing. “In the U.S., prices are competitive and that is one reason we don’t see margins fluctuating for Torrent.” While Torrent does have a presence in the U.S., it’s more of a domestic company,” Vishal Manchanda, Analyst at Nirmal Bang told BloombergQuint. “Other companies have volatile margin because of their presence in the U.S. Torrent Pharma’s operating margin increased over the last four financial years, while that of peers either remained flat or declined. Of the 34 analysts tracking the stock, 11 have a ‘buy’ rating, while 10 recommend a ‘sell’. The Nifty Pharma Index has gained 21% so far this year, while the BSE Healthcare Index is up 16%.īut the average of twelve-month price targets tracked by Bloomberg implies an upside of just 2.8% for Torrent Pharma. That’s, however, in line with rising demand for certain drugs during the outbreak, sending pharma and healthcare stocks higher. Torrent Pharma’s stock jumped more than 26% so far this year despite the worst selloff for equities in more than a decade triggered by the Covid-19 pandemic. The only other pharmaceutical company to have rallied more than Torrent Pharma is Divi’s Laboratories Ltd. Shares of the Ahmedabad-based drugmaker jumped 49% in the twelve-month period compared with a 14-48% gain in domestic peers and a 17% rise in the benchmark BSE Healthcare Index during the period, according to Bloomberg data.
deal.Īnalysts now see a limited upside citing lack of product pipeline and high valuations.
beat most of its larger peers in the last one year, aided by domestic business when Indian drugmakers faced pricing pressure in the U.S., and benefits of its Unichem Laboratories Ltd.
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