The stock of pharma major Torrent Pharmaceuticals was down 2.5 per cent in trade as most brokerages termed its Rs 2,000 crore acquisition of Curatio, a cosmetic and paediatric dermatology company, as expensive and earnings dilutive.
Though the acquisition will help the company expand its presence in dermatology segment where it has negligible presence, deal valuations (enterprise value) at 7 times its estimated sales and 23 times its operating profit for the 2022-23 financial year (FY23) are on the higher side. Curatio had reported sales of Rs 224 crore in FY22 and is expected to hit the Rs 275-crore mark