Religare Research has downgraded Torrent Pharmaceuticals to 'Sell' from 'Hold' with revised price target of Rs 1,000 in its report.

Commenting on the investment rationale, the stock broker said, ''Torrent Pharmaceuticals reported a weak Q4 with EBITDA falling 30%+ short of RCMLe as margins slid 650bps QoQ to 14% on higher costs.

While an at-risk launch of generic Abilify and likely lower competition in generic Nexium may boost near-term earnings, long-term tenable drivers are missing. Also, at 22.7x FY17 EPS, valuations are at a multi-year high and offer limited upside.

We downgrade the stock to SELL from HOLD with a March 2016 TP of Rs 1,000 from Rs 1,080 earlier, valuing the stock at 18x FY17E EPS (multiple unchanged).''

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