An important thing to notice , the improved margins @ 21% has been sustained for last 2 qtrs. Compare this against the usual margin of 16%. And this is an improvement by qualitative factors in the business. Hence, naturally one can assume that this margin can be sustained going forward. I think 2 qtrs give a certain level of confidence and being in pharma – a stable and defensive business. Based on these assumptions, my forecast for FY 16 profit is Rs 1284 cr which gives an EPS of 76. Rs 964 already achieved. Torrent can fall in the coming qtrs as traditionally profits are low in these qtrs. which gives an oppurtunity to add more. Hence your figure of 55 seem to be on the lower side. They need to make Rs160 cr each qtr to achieve my forecast of Rs 1284 cr.
Rgds
Discl: Invested
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