Torrent Pharma Complete Fundamental Analysis and Future Outlook
Torrent Pharma is the flagship company of the Torrent Group which operates mainly in the healthcare and power sector.
- The company is a market leader in the therapeutic segment of cardiovascular (CV), central nervous system (CNS), gastrointestinal (GI) and women healthcare (WHC).
- Torrent Pharma was a pioneer in initiating the concept of niche marketing in India and it is still a core business driver for them. The company has a presence in over 40+ countries in the world.
I have evaluated the company on 10 fundamental categories and each has been given a rating out of 5 stars. From this, I have arrived at a combined stock rating for the company.
This is the summary of the analysis. For details check the source link.
Source: Torrent Pharma Shares Fundamental Analysis and Future Outlook
Some insights for the coming years from management discussion & analysis (MD&A) and con calls are as follows.
- The COVID-19 outbreak will not have any significant impact on drug consumption across the world. The only problem would be the disrupted supply chains, which may have a revenue impact on the Indian generic drug industry.
- The US business of Torrent Pharma is expected to be stable or decline slightly over the next few quarters until the USFDA issues at Indrad and Dahej plants get resolved. Re-inspection at Indrad would happen by the end of FY 2020.
- India business growth stands at 1.8% YoY in volume terms, 8% YoY in price terms, 2% YoY in terms of new launches for the company. This is in line with the primary sales expectations.
- The company recently launched five products in India; it presently has 9 brands with more than INR 1 billion in annual sales
- On a constant currency basis, Brazil business was up by 23% in the last quarter, largely driven by increased market share in branded as well as generic drugs. This may also see increased growth in the coming years.
The company has some growth opportunities but is struggling with internal issues and USFDA approvals, which may take a few years to resolve. Overall the company does not paper very strong on a fundamental basis but can be useful in portfolio diversification.
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