Torrent Pharma - Strong quarter - Maintain Buy - Emkay

- Torrent Q1FY13 Results, above expectations - a) Revenue up by 20% YoY to Rs7.35bn, b) EBIDTA up by 8% YoY to Rs1.4bn and c) APAT up by 2% YoY to Rs909mn

- US grew 88%, India 13% & Brazil grew 26%. US business was lead by recent launches of Plavix, Seroquel & Zyprexa

- Gross margins expanded 216bps YoY & 417bps QoQ to 70% due to strong growth in India and US. EBITDA margins contracted 219bps YoY & expanded 766bps QoQ to 19%

- Going forward - new launches in US & Brazil will lead to 22% earnings growth. With cash of Rs8.9bn & RoCE/ RoIC of 24% / 37%, we maintain Buy with a target price of Rs785.

Source : Equity Bulls

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