Pharma Stocks Surge: Torrent Pharma and Glenmark Pharma's Q4 Results Analysis

 

The pharmaceutical sector is abuzz with excitement as two major players, Torrent Pharma and Glenmark Pharma, witness significant movements in their stock prices following the release of their Q4 results. Let's delve into the numbers and expert opinions to understand the implications of these developments.

 

Torrent Pharma:

  • Torrent Pharma's Q4 performance has sent ripples of optimism through the market, with its shares rallying nearly 9 per cent to reach fresh all-time highs. The company recorded a remarkable 56 per cent year-on-year jump in its net profit, signaling robust growth and operational efficiency.
  • Revenue from operations soared to Rs 2,745 crore for Q4FY24, a substantial increase from the previous year.
  • India revenue witnessed a commendable growth of 10 per cent, reaching Rs 1,380 crore.
  • Despite a subdued performance in the US market, Torrent Pharma experienced superior growth in Latin America and other regions, offsetting the setback.
  • Motilal Oswal views Torrent Pharma's performance as in-line with expectations. The company's growth in the branded generics segment and margin expansion have contributed to its 27 per cent year-on-year earnings growth. However, they maintain a 'neutral' rating on the stock with a target price of Rs 2,575.
  • ICICI Securities, on the other hand, sees significant potential in Torrent Pharma's future. They anticipate a revival in US sales in FY25 and have upgraded the stock to a 'buy,' setting an increased target price of Rs 3,035. 

Glenmark Pharmaceuticals:

  • Glenmark Pharma faced challenges in the US market, leading to increased losses. However, amidst this setback, there are signs of resilience and potential for recovery.
  • Glenmark's revenue grew by a modest 2 per cent YoY to Rs 3,060 crore, slightly below estimates.
  • Adjusted PAT surged to Rs 160 crore, showcasing resilience and effective cost management strategies.
  • Motilal Oswal is yet to provide a target price for Glenmark post its conference call. However, they acknowledge the company's efforts in navigating challenges and maintaining stability amidst market fluctuations. 

Conclusion:

As investors digest the Q4 results of Torrent Pharma and Glenmark Pharma, it's evident that both companies are navigating unique challenges and opportunities. While Torrent Pharma celebrates its impressive performance and charts a path for future growth, Glenmark Pharma focuses on mitigating losses and leveraging its strengths to bounce back stronger. Investors should closely monitor these developments and factor in expert insights while making informed decisions in the dynamic pharmaceutical landscape.

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