Torrent Pharma Ltd

(Hitesh Patel) #358


Torrent seems to be forming a base around 1200 levels. Lets see how it pans out. I think it will take a long time to form a base before a significant upmove. But overall it looks to be stabilising and might be coming out of the woods.

(kdjolly) #359

Interesting interview :

(Hashims) #360

(Hashims) #362

Torrent Pharma acquires Branded Formulation Business of India and Nepal of Unichem Laboratories Limited

(Rohit) #363

Paid 3600 crores for domestic business of unichem having sales of 850 crores approx. Isn’t the price paid is high. I read somewhere that they may need to take some debt also for this acquisition. What others think about the valuation paid ? Can it have bad effects on balance sheet ? Kindly share your views.

(sunilgct) #364

This is from Sharekhan,…

Torrent Pharma: Acquires Unichem Laboratories domestic branded business (Rs 841.5 crore sales in FY2017) along with a manufacturing facility in Sikkim and ~ 3000 employees for a consideration of Rs 3600 crore (4.3x sales). View: The deal valuations (4.3x sales) are in line with similar deal in the past. The management expects the deal to be cash accretive for year one and EPS accretive from year three of operations. But it will depend on the company’s ability to ramp up the acquired business. However, the Q2 results are not encouraging and we expect the street to reduce target price given the weakness in core earnings and hangover of the debt (75% funding of deal thru debt).

(Bhaskar Jain) #365

I am invested in both Torrent and Unichem from some time. No doubt Torrent has paid a premium but for me the positives are -

  • Past track record of Torrent in gaining from domestic acquisitions
  • Not many overlapping products
  • Unichem management was very conservative. Maybe under Torrent’s wing the business grows faster

Negative for me is the age of the Unichem plants. Not sure how much maintenance capex is required yoy.

(shimoli.singhal) #366

(Rohit Ojha) #367

Torrent posted a detailed presentation for the 1st time

The highlight of the presentation is the acquisition lead growth strategy. They have been successful at integrating 30 brands from Elder and 2 from Novartis. Shelcal sales have gone up from 195 in 2014 to 333cr in 2017. Chymoral has gone up from 77 to 144cr in same period. Regestrone acquired from Novartis has shown god y-o-y growth in 2017. Lets see if they can do the same for 120 brands of Unichem.

Management mentioned that they are planning to consolidate and digest the recent acquisitions, but at the same time they mentioned that they are always looking for opportunities.

On USA- company has 77 products under development. During concall, management said that they launched 5 products in 9 months and 2 more will happen in Q4. They filed 3 ANDAs and got 5 tentative approvals. Next year will see 10 approvals and launches. The ANDA filing rate has been lacklusture inspite of R&D investments of 432cr in 2017 vs 246cr in 2016.

The presentation also mentions about 2 NCEs for emerging markets in Phase III.

Net debt stands at 4000cr.

Discl: Tracking position

(Rohit Ojha) #368

Torrent coming with qip to bid for Zentiva

(Akansha17) #369

Mutual Fund holdings of Torrent Pharma Ltd are increasing every month.

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