ICICI Securities: Torrent Pharma’s Operating Leverage Story To Continue 
A person inspects a sample of pills. (Photographer: Antoine Antoniol/Bloomberg)

ICICI Securities: Torrent Pharma’s Operating Leverage Story To Continue 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Torrent Pharmaceuticals Ltd.’s Ebita margin has consistently improved over the years backed by superior business mix, strong execution and operating leverage.

Ebitda margin improved approximately 400 basis points over FY18-FY20 and we expect it to improve further 350 basis points over FY20-FY23E driven by operating leverage and improving revenue mix.

We are positive on the long-term outlook considering growth improvement in India business with dominance of chronic segment, potential resolution of official action indicated status at two facilities in FY21, earning per share compound annual growth rate of 24.2% over FY20-FY23E and strengthening balance sheet with growing free cash flows.

Click on the attachment to read the full report:

ICICI Securities Torrent Pharma Company Update.pdf

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