Global brokerage Citi has upgraded Torrent Pharmaceuticals Ltd. to 'Buy' and also raised its price target to Rs 1,860 per share from Rs 1,700 earlier.

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The revised price target implies a potential upside of 18 percent from current levels.

The brokerage in a note stated that the company's branded generic businesses are growing stronger and that the earnings growth is no longer contingent on the recovery and subsequent growth in the United States generics market.

Citi believes that a potential recovery in the US business, can add around 7-10 percent to the company's Earnings per Share (EPS). However, this is not factored into the company's current valuation, which the brokerage believes are reasonable.

Torrent Pharma's revenue mix has improved in favor of branded generics, now estimated to be 74 percent in the next financial year, compared to 65 percent in financial year 2021. The company looks to have its core strength in chronic therapies, where growth is inherently higher and market share, as well as pricing, is sticky.

Torrent Pharma, with an annual revenue of more than Rs 8,500 crore, is the flagship company of the Torrent Group.

It is ranked eighth in the Indian pharmaceuticals market and is amongst the top five in the therapeutics segments of cardiovascular (CV), gastro intestinal (GI), central nervous system (CNS), and vitamins minerals nutritionals (VMN).

It is a specialty-focused company with seven manufacturing facilities, of which 4 are United States Food and Drug Administration approved.

Torrent Pharma last month announced entering into co-marketing partnership with Boehringer Ingelheim India Pvt Ltd to co- market its anti-diabetic drug and its fixed-dose combinations in India.

Shares of Torrent Pharma are trading 0.75 percent higher at Rs 1,581.95.