Share price of Torrent Pharma hit a fresh all-time high today after the firm reported a strong earnings show in Q1. Torrent Pharma stock rose up to 13.05% to Rs 2,754, a fresh all-time high, compared to previous close of Rs 2,436 on BSE.The stock opened 4.07% higher at Rs 2,536 today.
Torrent Pharma share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Total 1.89 lakh shares changed hands amounting to turnover of Rs 50.64 crore.
Later, the share closed 9.27% or Rs 225 higher at Rs 2,662 on BSE. Market cap of the firm stood at Rs 45,058 crore. The share has risen 59.51% in one year and gained 44.17% since the beginning of this year.
In three years, the share has gained 103%.
Torrent Pharmaceuticals reported a 48.61 per cent rise in its consolidated net profit to Rs 321 crore in Q1 against net profit of Rs 216 crore for the corresponding period of the previous fiscal.
Revenue rose marginally to Rs 2,056 crore in Q1 compared to Rs 2,022 crore revenue for the same period a year ago.
"Q1 continued to witness challenges posed by COVID-19, hampering industry growth in global markets. However, most of our focus markets have seen a steady recovery since June," firm's Executive Chairman Samir Mehta said.
In India, despite a challenging market environment, Torrent was able to sustain its base revenue of the previous year with the chronic and subchronic portfolio gaining market share.
CLSA said the strong rise in Q1 net profit was driven by margin surprise. Higher gross margins and lower operating expenditure led to 539 basis points spike in EBITDA margin.
The brokerage raised FY21-22 earnings per share estimates by 2-4%. It raised the target price with a buy call to Rs 3100 from Rs 2920.
Brokerage CITI said the pharma firm posted good numbers in a challenging environment. Q1 earnings demonstrate resilience in business model of the firm.
CITI expects momentum to continue, aided by recovery in branded generics markets post ease in lockdowns, and pick up in the drag business (Germany / US) over next 6/12 months. The brokerage gave a buy call for the stock with a target price of Rs 2950.