Torrent Pharmaceuticals Share Should Buy or Not? falls over 2% after Q2 results

During the early trade hours of Wednesday morning, October 25, 2023, i.e. today, the share prices of Torrent Pharmaceuticals showed a slight decline. Reports have claimed that Torrent Pharmaceuticals equity shares were trading more than 2 percent lower on Wednesday morning when the market opened. The negligible decline in the share price of Torrent Pharmaceuticals came after the company released its report for the second quarter of the current fiscal year. Have you gone through the financial report of Torrent Pharmaceuticals for the quarter that ended in September? Many have been scrounging the web to analyze the report of Torrent Pharmaceuticals for Q2FY24 as they are perplexed about whether they should buy the shares of Torrent Pharmaceuticals or keep themselves silent. If you are also scrambling to the web regarding the same, take a peek below. Scroll down.

Torrent Pharmaceuticals

This morning the shares of Torrent Pharmaceuticals declined as low as 2.74 percent taking its value to Rs 1822.80 apeice on BSE. As mentioned, the decline in the share price of Torrent Pharma was shown after the company released its report for FY24. The highlight of Torrent Pharmaceuticals’s financial report for the second quarter of FY24 is the firm claimed a consolidated net profit of Rs 386 crore which was 24 percent higher for the corresponding period in the previous fiscal year and the total revenue generated from the operations surged by 16 percent taking its value from Rs 2291 crore in the previous fiscal year to Rs 2660 the current fiscal year. Swipe down the page and read more details.

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Torrent Pharma’s EBITDA (earnings before interest, taxes, depreciation, and amortization) was at Rs 825 crore, while its EBITDA margin was at 32 percent in the second quarter ended September month. As per the reports, the company focuses specialty on drugs and reported 18 percent growth in the second quarter of its Indian operations taking its revenue to Rs 1,444 crore from Rs 1,224 crore in the previous fiscal year.

The brokerage firm Motilal Oswal Financial Services said, “While US generics base business continues to witness price erosion, new approvals would drive growth prospects. Considering these factors, we expect 14%/19%/34% sales/EBITDA/ PAT CAGR over FY23-25 to $124 billion / $40 billion / $22 billion,” The firm reduced its FY24 earnings estimate by 4 percent to factor in moderation in the US generics business and higher interest cost. It maintained earnings estimates for FY25. Motilal Oswal gave its Neutral rating to Torrent Pharma for its limited upside from the current operations.

Amzad Khan
Amzad Khan

Hey there, guys. I am Amzad Khan. I enjoy writing on topics related to my interests in gaming and technology. My work has attracted a dedicated fan base thanks to the fresh and unexpected angle I bring to each piece.