Shares of Torrent Pharmaceuticals Ltd today gained 0.8 per cent against 1.4 per cent fall in NSE index.
The uptrend in share prices is after Nomura initiated coverage with a “buy’’ rating and a target price of Rs 1,278.
Nomura has cited Torrent’s “strong’’ track record of execution in certain markets for upgrading the rating.
It says that it expects Torrent to sustain earnings growth of more than 20 per cent over next three years.
Nomura has also cited Torrent’s “strong’’ balance sheet and free cash flow generation for the rating upgrade.
By region, Nomura says India and the United States would be key to drive Torrent’s growth.