Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - JPMorgan upgraded Torrent Pharma (TRP:IN) stock rating to Overweight from Neutral on Friday, while raising its price target to INR3,800 from INR3,650, representing a potential 18% upside.
The upgrade comes as JPMorgan highlights Torrent’s strong growth momentum in India, where the company has achieved a five-year revenue compound annual growth rate of 13%, outpacing the industry average of approximately 9%. The firm expects this trend to continue, supported by Torrent’s chronic-focused portfolio, which represents 55% of its business.
JPMorgan also cited improved growth visibility in Torrent’s Brazil operations, which are showing strong underlying performance despite previous currency headwinds. The firm believes Torrent is well-positioned to capture more than its fair share of the emerging GLP-1 opportunity in India by leveraging its leadership in cardiometabolic care.
The research firm noted this GLP-1 opportunity could add approximately 100-200 basis points to Torrent’s annual growth. The Brazil business may also benefit from GLP-1 launches, though likely with a delay as Torrent may not be in the initial wave of generic launches expected by mid-2026.
JPMorgan emphasized Torrent’s cash flow generation remains among the strongest in the sector, keeping the company on track to become debt-free by fiscal year 2027. The stock currently trades at 25x/22x FY26E/27E EV/EBITDA, at a slight discount to peers such as Mankind based on JPMorgan estimates.
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