India's Torrent Pharma misses Q3 profit estimates, hurt by insulin plant closure

Glenmark Pharmaceuticals

24/01/2025 11:42

Jan 24 (Reuters) - India's Torrent Pharmaceuticals  TORP.NS  reported a smaller-than-expected third-quarter
profit on Friday, hurt by the planned closure of its insulin manufacturing facility.
    The company, known for its calcium supplement Shelcal 500, reported a near 14% rise in consolidated net profit to
5.03 billion rupees ($58.3 million) for the quarter ended Dec. 31, missing analysts' estimates of 5.13 billion rupees,
per data compiled by LSEG.
    Revenue rose nearly 3% to 28.09 billion rupees but came short of analysts' estimate of 29.92 billion rupees.
    
    KEY CONTEXT
    Indian drugmakers have seen strong growth in domestic formulations, particularly in therapeutic areas, including
cardiac, gastrointestinal, and anti-diabetes.
    However, Torrent Pharma was hurt due to the closure of an insulin manufacturing facility in August and a 17% on-year
depreciation in Brazil's currency, the company said.
    Rival Granules India  GRAN.NS  posted a drop in third-quarter profit hurt by pricing pressure in its key European
market, while Mankind Pharma  MNKI.NS  posted a smaller-than-expected profit, hurt by a sharp rise in expenses.
    
    PEER COMPARISON    
                                  Valuation (next 12      Estimates (next 12          Analysts' sentiment           
                                        months)                months)                                          
                         RIC      PE    EV/EBI  Price/   Revenue      Profit     Mean     # of      Stock to      Div
                                         TDA    Sales   growth (%)  growth (%)  rating*  analyst     price       yield
                                                                                            s       target**      (%)
   Torrent Pharma      TORP.NS   44.12  25.46    6.81     12.53       29.17       Buy      26         0.91        0.86
   Mankind Pharma      MNKI.NS   44.64  26.53    6.99     21.59       13.49       Buy      15         0.94         -
   Glenmark Pharma     GLEN.NS   24.96  14.68     -       11.41       63.98       Buy      10         0.87        0.17
     Sun Pharma        SUN.NS    34.08  25.52    6.30     10.34       15.90       Buy      32         0.90        0.74
    
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the
PT
    
    OCTOBER TO DECEMBER STOCK PERFORMANCE
    
-- All data from LSEG
-- $1 = 86.2210 Indian rupees

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 (Reporting by Ashna Teresa Britto; Editing by Rashmi Aich)
 ((AshnaTeresa.Britto@thomsonreuters.com;))