Torrent Pharma - Good quarter in spite of disturbance in Brazil - Buy - Emkay

Reco: BUY
CMP: Rs 663
Target Price: Rs 785

- Torrent Q2FY13 Results, in-line with expectations - a) Revenue up by 14% YoY to Rs7.5bn, b) Adj. EBIDTA up by 23% YoY to Rs1.45bn and c) APAT up by 14% YoY to Rs995mn

- US grew 27% (excl. licensing income) & India grew 15% YoY. However, Brazil declined 3% YoY due to strike by regulatory authority which affected clearance of goods from the port

- Gross margins expanded 483bps YoY & 87bps QoQ to 71% and Adj. EBITDA margins expanded 100bps YoY to 19%

- Going forward - new launches in US & India will lead to 22% EPS CAGR over FY12/14E. With RoCE/ RoIC of 24% / 37%, we maintain Buy with a TP of Rs785 (16x avg. EPS of FY13/14E)

Source : Equity Bulls

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