Different opinion makes the market and a stock is cheap for some reason. Let me start with this.
I have some counterargument to the points you made.
US/Other Generic Business:
1. The talk of one time gain is over hyped in my view. After a windfall gain the prices will stabilize at much lower level(1-3% of the innovator’s price as per management). The key is to have a good generic pipeline which seems to be a concern for market. However, management has clearly told that they will be filing 15-20 ANDA every year from FY17. So this will be taken care in due course.
2. The windfall gain can be used to clear 2400cr. debt or acquire another company/brands which will go very well for company’s earnings.
3. Management is on records that they will have the US business at $500million by 2020. This is more than 4 times of FY15 US sales.
4. Their Brazil and Europe(Germany, UK primarily) will also stabilize in due course which is facing currency issues.
5. The new facility at Dahej will take care of the growing export needs.
Domestic Business
1. This also is expected to grow around 15% compounded for next few years. The acquisition of brands from elder is really helping the company and two of them are in 100cr+ sales league.
Overall, I feel Torrent will do very well for next 4-5 years and market men will jump only when the earning consistency fear goes off.
Disc: Invested with more than 10% of portfolio.
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