India`s Torrent Pharma misses Q3 profit estimates, hurt by insulin plant closure
India's Torrent Pharmaceuticals 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 posted a drop in third-quarter profit hurt by pricing pressure in its key European market, while Mankind Pharma 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 44.12 25.46 6.81 12.53 29.17 Buy 26 0.91 0.86
Mankind Pharma 44.64 26.53 6.99 21.59 13.49 Buy 15 0.94 -
Glenmark Pharma 24.96 14.68 - 11.41 63.98 Buy 10 0.87 0.17
Sun Pharma 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
