JPMorgan has upgraded Torrent Pharma to ‘Overweight’, with a revised price target of ₹3,800 from ₹3,650 per share earlier. The new target implies a potential upside of 18% from Thursday’s closing levels.
According to JPMorgan, the upgrade was driven by strong growth momentum in India, which is expected to continue.
The Brazil business also shows improved growth visibility, driven by robust underlying performance and a favourable base effect due to adverse currency movements.
Additionally, Torrent has the potential to capture more than its fair share of the emerging GLP-1 opportunity in India, leveraging its leadership in cardiometabolic care, an opportunity that JPMorgan believes could add 100-200 basis points to its annual growth.
While the Brazil business may also benefit from the GLP-1 launch, the impact is likely to come with a lag, as Torrent may not be part of the initial wave of generic launches expected around mid-2026.
Torrent’s cash flow generation remains among the strongest in the sector, keeping the company firmly on track to become debt-free by FY27.
Lastly, the stock trades at reasonable valuations of 25x/22x FY26E/FY27E earnings.
Out of the 33 analysts that have coverage on Torrent Pharma, 21 of them have a ‘Buy’ rating, seven say ‘Hold’, while five of them have a ‘Sell’ recommendation.
Shares of Torrent Pharmaceuticals now trades 2.90% higher at ₹3,319.35. Despite today’s gain, the stock is down on a year-to-date basis.
