Quick ValueDatabase

Taro Pharma

Ticker
$TARO
Industry
Pharma
Type
Beaten Up
Rating
Covered
Category
General
Target Price
$53.00
Latest Report
https://vdl.substack.com/p/taro-pharmaceuticals-taro

Price performance has been terrible with virtually no returns for a decade+

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Notes

  • Controlled (78.5% ownership) by Sun Pharma — an India-based drug company; attempted several takeovers at low prices in years’ past
  • US generics company (mostly dermatology products) with huge net cash position
  • 2018 sales fell off from generic competition and patent losses
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2020-2021 hit particularly hard from COVID and generic competition
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EV/FCF is outrageously cheap... depending on the normalization of recent legal settlements, could be 1-2x FCF — cheap stocks can (and will) get cheaper!
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Resources

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March 2014 — VIC write-up: long at $109/share

https://valueinvestorsclub.com/idea/TARO_PHARMACEUTICL_INDS_LTD/0359089169

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November 2021 — Investor presentation (pdf)
Taro Investor Presentation - November 2021.pdf1762.5KB
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August 2022 — VDL: Taro too cheap with cash flow turning corner

https://vdl.substack.com/p/taro-pharmaceuticals-taro