Low US exposure makes Torrent Pharma a safe bet among drug firms

Torrent has successfully gained volume share and demonstrated its ability to take price increases

While large Indian generic pharmaceutical peers are struggling with pricing pressure in the US market, Torrent Pharma’s lower exposure to the geography and strong domestic growth has helped it to make steady gains on the bourses. It is up about 40 per cent in a year.

Analysts at Nomura said “despite Torrent’s outperformance, we remain constructive on the stock as we think the steady earnings rise will continue, driven by above-average domestic growth and operating profit margin expansion”.

The company continues gaining in the domestic arena through growth in well-established brands and turnaround of acquisitions. Cost controls are aiding earnings growth. The