with a market capitalization of 51,456.63 Crores, Torrent Pharmaceuticals Limited is a Large Cap company in the Pharmaceutical Industry. Torrent Pharma, the flagship arm of the Torrent Group, is one of the top pharmaceutical firms in the country. Torrent Pharma is classified as No. 1 among Indian companies having the largest market share in Brazil and Germany. The company also has a large footprint in diabetology, pain management, gynecology, oncology, and anti-infective categories. It is also recognized as a pioneer in the therapeutic areas of cardiovascular (CV), central nervous system (CNS), gastro-intestinal (GI) and women’s health care (WHC). Torrent Pharma is one of the well-known multibagger stocks that have made investors millionaires during long-term shareholding, let’s know how.
Share Price and Bonus History
Shares of Torrent Pharmaceuticals Limited are trading today at Rs. 1,516.05 per piece, up 0.44% from the previous close. From 7.04 On July 6, 2001, at the current market price, the stock price has risen tremendously, entering a multibagger return and an all-time high of 21,434.80%.
The company’s share price in the initial round was Rs 7.04. If an investor had invested Rs 1 lakh in the stock at that time, he would have had a stake in 14,204 shares in the company. The company has announced Bonus Issues 3 times, which are in the ratio of 1:1 in the year 2006, 1:1 in the year 2013 and most recently in the year 2022 in the ratio of 1:1.
The company’s first bonus issue was on 20 February 2006 in the ratio of 1:1. As mentioned earlier, if an investor held 14,204 shares of the company from the beginning, after the bonus announcement, that count would change to 28,408 shares, which would change both the value and the shareholding percentage of the investor. Many years later, it again issued a bonus in the ratio 1:1 both in the year 2013 and in the year 2022, which changed the share count of an investor to 1,13,632 and multiplied the value after 3 bonus shares. Initial investment of more than 1000 times, making it over Rs.17.22 Crore at today’s market price.
If an investor had thought of a long term view in the company then the business strategy would have proved correct because even after just two bonuses the stock made the investor a millionaire and not leaving the position means he is about to receive a stock As the day full of paper money is making them millionaires. So the best theory is to stick to the money-drawn plan to make money.
Torrent Pharma Q1FY23 Results
On a consolidated basis, the company reported net sales of 2347 crore in the quarter ended June 2022 2134 crores recorded in Q1FY22 which represents a year-on-year growth of 10%. the total cost of the company reached 2377 crore in Q1FY23 as compared to 2174 crores recorded in the year-ago quarter, representing a year-on-year growth of 9.33%. Company reported gross profit 1,687 crore in Q1FY23 as compared to 1,546 crores recorded in Q1FY22, representing a year-on-year growth of 9%.
Profit Before Tax (PBT) of the company grew by 9.91% y-o-y Q1FY22 to . 484 crore was registered in 532 crore in Q1FY23. The company’s profit after tax (PAT) or net profit grew by 7% yoy Q1FY22 to . 330 crore in 354 crore in Q1FY23 and EBITDA up 3% YoY 717 crore in the quarter of June 2021 to 742 crore in the quarter ended June 2022. Company’s EPS jumped 19.53 in the year-ago quarter to 20.90 in Q1FY23.
Further, on a standalone basis, the Company recorded revenue from the operations of 1933 crores in Q1FY23. Compared to 1695 crores in Q1FY22, representing a year-on-year growth of 14%. PAT up 19% year-on-year Q1FY22 to . 274 crore in 327 cr in Q1FY23, while PBT improved by 19.90% YoY Q1FY22 to . 412 crore in 494 crore
Should you buy Torrent Pharma shares?
Based on the Q1 performance of Torrent Pharma, research analysts at broking firm Sharekhan said in their research report that “Torrent sees a healthy outlook for India business, driven by reach, market share growth and potential traction in new business.” is supported. Generic Division. Expected growth in the existing portfolio, and plans to strengthen presence in covered markets, will fuel growth in Brazil’s sales, while higher cost pressures, price erosion, and delays in re-inspections of plants by the USFDA will fuel US growth. Speed may be slow. On CMP, the stock trades at 33.2x/27.1x its FY2023E and FY2024E. Given the strong growth prospects in the Indian and Brazilian businesses, we maintain our buy recommendation on the stock with the revised PT 1820.”
Research Analyst at broking firm Prabhudas Lilladher Pvt Ltd. Ltd. has said, “Torrent Pharma (TRP) revenue growth in key branded generic markets was healthy, which is likely to continue. In the branded generics business, further price hikes and cost-cutting measures have helped margins. The high risk of TRP for the branded generic business (~70% of total revenue) and chronic medicine provide comfort. In the future, timely resolution of plants will accelerate revenue growth in the US and leverage operating profits. We expect 21% EPS CAGR in FY22-24E. Our FY23 and FY24E EPS remain largely unchanged. Maintain ‘Buy’ rating with a revised TP of 1,750/share (earlier Rs 1625), 32x FY24E EPS.”
Research analysts at broking firm Anand Rathi have said, “Backed by growth in its BGx business in India, Brazil and ROW, Torrent’s Q1 revenue grew 10% y/y to 23.5bn. Its gross margin was primarily higher BGx and ROW. gDapsone contribution increased from 107bps q/q to 72%. Improved 401bp q/q EBITDA margin to 30.3% as a result of lower other expenses (liquid business closed in US) and R&D expense (5% of sales). , continued growth and product launches in India, Brazil and ROW, and cost efficiencies (closed liquids business in the US) will drive revenue, EBITDA and PAT CAGR of 10%, 15% and 24%, respectively, in FY 22-24. Keep buying on the stock with a TP of 1,724, which is valued at FY24e 19x EV/EBITDA.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.