India: Torrent Pharmaceuticals, Cipla Ltd, Maruti Suzuki India, Zensar Technologies and more

• Incorporated in 1959, Torrent has a strong presence in domestic and semi-regulated markets and a growing presence in regulated markets.
• Revenues – India including CRAMs (53%), Brazil (8%), US (16%) and Germany (13%)
• Target Price and Valuation: We value Torrent at Rs 3235 i.e. 28x P/E on FY24E EPS of Rs 115.5

• Cipla is a global pharma company with over 1,500+ products in 65 therapeutic categories, with over 50 dosage forms
• Cipla supplies branded and generic medicines to over 170 countries globally.
• Target Price and Valuation: We value Cipla at Rs 1100 i.e. 24x P/E on FY24E EPS of Rs 44.6 + | 31 NPV for gRevlimid.

Federal Bank: Federal Bank (FB)’s Q3FY22 earnings were broadly in line with our estimates as declining credit costs (64bps) were partially offset by muted reflation in asset yields and lower other income. Asset quality continues to be impressive with negative net slippages, stable credit costs at 64bps, and a steady restructured pool (2.6%). While loan growth witnessed healthy traction (+12% YoY), asset yields continue to be soft, which is likely to reflate only gradually through exercising of pricing power and growth in unsecured retail (credit cards, PL, MFI, etc.).

• Maruti Suzuki (MSIL) is the market leader in the domestic passenger vehicle (PV) space
• Market leader in each sub-segment – cars (62.2%), UV (21.6%), vans (96.6%)
• Target Price and Valuation: Introducing FY24E, we roll over our valuations and now value MSIL at Rs 8,760 i.e., 30x P/E on FY24E EPS (previous target Rs 6,000)

• Zensar Technologies (Zensar) offers application & IMS services to hi-tech, manufacturing, retail and BFSI.
• Zensar has grown organically and inorganically over the years
• Target Price and Valuation: We value Zensar at Rs 525 i.e. 20x P/E on FY24E