- Torrent Pharma’s 4Q net income was 4.49 billion rupees, marking a 56% increase year on year.
- The reported net income perfectly matched market estimates.
- The company’s revenue for the quarter stood at 27.5 billion rupees, an increase of 10% compared to the same period last year.
- This result is slightly below the projected revenue of 27.81 billion rupees.
- Total costs for the quarter amounted to 21.5 billion rupees, representing a modest increase of 3.9% year-on-year.
- Ebitda was reported as 8.83 billion rupees, representing a substantial 21% growth year on year.
- However, this figure slightly fell short of the anticipated figure of 8.96 billion rupees.
- The gross margin was 75%, improving from last year’s 72%, and marginally exceeded market expectations of 74.8%.
- Dividends per share were announced at 6 rupees.
- The company’s shares have fallen 3% in value to 2,613 rupees, despite the overall positive performance.
- There were a total of 199,442 shares traded.
- Opinions on the stock among analysts are mixed, with 29 buying recommendations, 5 holds, and 2 sells.
Torrent Pharmaceuticals on Smartkarma
On Smartkarma, a notable independent analyst, Tina Banerjee, recently published insightful research on Torrent Pharmaceuticals. In her report titled “Torrent Pharmaceuticals (TRP IN): Q2FY24 Result- Domestic Business Continued Solid Growth Path,” Banerjee highlighted the company’s impressive performance. Torrent reported a remarkable 16% revenue growth in the second quarter, primarily propelled by its operations in India. The strong growth in chronic therapies, revived gastro demand, traction in the consumer division, and successful new launches contributed to this positive outcome. Notably, the company’s revenue in India, Brazil, and Germany showed strength, although there was a decline in the U.S. market. The EBITDA increased by 22% year on year, leading to a margin expansion to 31% through effective cost optimization and strategic business decisions. Banerjee maintains a bullish stance on Torrent Pharmaceuticals, emphasizing the company’s robust position in the domestic market and the potential for further growth driven by superior performance in key regions and continued margin enhancements.
A look at Torrent Pharmaceuticals Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Torrent Pharmaceuticals is positioned for a promising long-term outlook. With strong scores in Dividend and Momentum, the company shows potential for consistent returns and upward stock price movements. Additionally, Torrent Pharmaceuticals‘ Resilience score suggests stability and the ability to weather market volatility. While the Value and Growth scores are moderate, the company’s focus on dividend payouts and positive momentum could make it an attractive investment for those seeking steady performance.
As a manufacturer of bulk drugs and pharmaceutical formulations, Torrent Pharmaceuticals has established a wide range of products, including cardio-vascular, psychotropic, and anti-biotic drugs. With wholly owned subsidiaries in various international markets, both regulated and less regulated, the company has a diversified presence that may contribute to its overall resilience and growth potential. Investors looking for a pharmaceutical company with a balance of dividends, growth prospects, and market momentum may find Torrent Pharmaceuticals to be a compelling choice based on the Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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