Buy Torrent Pharmaceuticals; target of Rs 5500: Prabhudas Lilladher

Moneycontrol • 6 days ago

Original source

Key Investment Pillars

  • Domestic business growth: TRP's domestic business grew 57% YoY, driven by robust execution and momentum in chronic and sub-chronic therapies.
  • JB Chemicals & Pharma integration: The integration is progressing ahead of schedule, with cost synergies exceeding initial expectations and revenue synergies likely to accrue from FY28E.
  • Semaglutide market share recovery: Management expects to recover lost market share in injectable semaglutide following supply normalization.
  • International business expansion: TRP's international business, including Brazil and the US, is expected to drive growth, with a strong pipeline of new launches and increasing market share.

Thesis Validation Checklist

  • Monitor domestic business growth: Watch for continued momentum in TRP's domestic franchise, with a focus on chronic and sub-chronic therapies.
  • Track JB Chemicals & Pharma integration progress: Look for updates on the integration, including cost synergies and revenue growth.
  • Follow semaglutide market share trends: Monitor TRP's market share in injectable semaglutide and its impact on overall business performance.
  • Assess international business expansion: Evaluate TRP's progress in expanding its international business, including new launches and market share gains.