Fan Site: Inspired, Not Endorsed, By Rakesh Jhunjhunwala

CS on Torrent Pharma
Outperform, Target Price Rs 1750
Acquired 100% stake in Curatio for Rs20bn
It is a dermatology portfolio, with focus on paediatrics (60% of total sales)
Acquisition provides scale in fast-growing dermatology segment
Cost of acquisition high at 23x FY23E EV/EBITDA

CITI on Torrent Pharma
Neutral, Target Price Rs 1700
Curatio: Strategic Fit but Expensive & Earnings Dilutive
Acquisition appear expensive at c7x/21-23x of FY23E Rev/EBITDA
Acquisition can turn out to be c9%/5% EPS dilutive in FY23/24E EPS & neutral on cash earnings in FY24E

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Disclaimer: This is a Fan Site in Rakesh Jhunjhunwala's name. Rakesh Jhunjhunwala is not associated with us and is in no way aware, accountable or responsible for what is stated here. Further, nothing here constiutes investment advice for you to act on. Also, we have a vested interest, and are extremely biased, in everything that we say. So Mind It!