Torrent Pharma Disappointment continues in domestic biz – Maintain Hold::Emkay

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Torrent Pharma

Disappointment continues in domestic biz – Maintain Hold

HOLD

CMP: Rs550                                        Target Price: Rs618

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n     Q3FY12 results - Revenues at Rs6.7bn (up 22% YoY), EBITDA at Rs1bn (up 9%) and PAT at Rs832mn (up 8% YoY)

n     Strong growth in revenues led by 71% growth in US and 29% growth in Brazil. Domestic business continues to disappoint with 8% growth

n     Profitability impacted because of weak growth in profitable markets like India and forward covers taken at lower rate

n     Going forward – Q4 is also expected to be subdued because of weak growth in India and forward covers at lower rates compared to current USD/ INR rate. Maintain hold on the stock with a target price of Rs618 (14x FY13 EPS of Rs44)