Christmas Pick 2023: Blue Chip Pharma Stock Gets Buy Call From Sumeet Bagadia

Torrent Pharmaceuticals Ltd., a major player in the pharmaceutical industry, closed Thursday's trading session with a market valuation of Rs 74,276.98 Cr. After rising 42% YTD, the stock reached a fresh 52-week-high at Rs 2,204.95 apiece and closed 2.35% higher at Rs 2194.75 a share on the BSE. Torrent Pharmaceuticals is Choice Broking's Christmas Day Pick for 2023, and executive director Sumeet Bagadia is bullish on the stock with a target price of Rs 2420/2490.

Torrent Pharmaceuticals Share Price Target

Buy TORNTPHARM @ 2185 & add Upto 2090 for the Target of 2420/ 2490

Sumeet Bagadia-Executive Director of Choice Broking said, "The stock has recently displayed a notable technical pattern on its daily chart, shaping a cup and handle formation-a bullish signal reflecting inherent strength and potential upward momentum. This positive sentiment is further fortified by a substantial support zone situated around 2090 levels, in close alignment with the 20-day Exponential Moving Average (EMA). The stock's ability to sustain levels above crucial moving averages underscores its bullish stance."

"Adding to the optimistic scenario, the emergence of a bullish engulfing pattern accentuates the potential for an upward trajectory in prices. This candlestick pattern typically signifies a shift in market sentiment from bearish to bullish. Examining the momentum dynamics, the Relative Strength Index (RSI) currently stands at 65 levels and is on an upward trajectory," the analyst added.

"This ascending RSI suggests that buying interest is strengthening, complementing the broader technical picture. So based on the above structure we are recommending a buy position in the stock for medium to long term," Sumeet Bagadia further stated.

Torrent Pharmaceuticals Financials

The pharmaceutical company Torrent Pharmaceuticals Ltd announced that its net profit for the second quarter, which ended on September 30, 2023, climbed by 23.7% YoY to Rs 386 crore. Torrent Pharmaceuticals reported a net profit of Rs 312 crore for the same period the previous fiscal year, according to a regulatory filing from the business. Total revenue for the quarter was Rs 2,660 crore, up 16.1% from Rs 2,291 crore during the same period in the previous fiscal year. EBITDA jumped from Rs 679 crore in Q2FY23 to Rs 825 crore in Q2FY24, a 36.2% growth. The EBITDA margin was 31% in the reporting quarter compared to 29.6% in the same period of the previous fiscal year.

Torrent Pharma Shareholding

During Q2FY24, the company recorded promoters' shareholding of 71.25%, FIIs stake of 13.15%, DIIs stake of 7.91%, Govt stake of 0.10% and public stake of 7.59%. According to Trendlyne data, the number of FII/FPI investors jumped from 656 in the June 2023 quarter to 682 in the September 2023 quarter, while the number of promoters' holdings remained unchanged at 71.25%. Mutual funds' stake dropped from 5.59% to 5.32%, while the number of MF schemes remained constant at 30, and the number of institutional investors plunged from 21.17% in Q1FY24 to 21.16% in Q2FY24.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.