Is Torrent Pharma overvalued or undervalued?

As of January 12, 2024, Torrent Pharma is considered very expensive and overvalued, with a PE Ratio of 55.29 and an EV to EBITDA of 29.34, significantly higher than its peers like Sun Pharma and Cipla, despite a strong historical performance.

As of 12 January 2024, Torrent Pharma's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market positioning. The company is currently considered overvalued. Key ratios include a PE Ratio of 55.29, an EV to EBITDA of 29.34, and a PEG Ratio of 2.63, all of which are substantially higher than industry norms.<BR><BR>In comparison to its peers, Torrent Pharma's valuation metrics stand out unfavorably; for instance, Sun Pharma has a PE Ratio of 35.25 and an EV to EBITDA of 24.91, while Cipla boasts a more attractive PE of 22.99 and an EV to EBITDA of 15.93. The elevated ratios suggest that Torrent Pharma is priced at a premium compared to its competitors, reinforcing the conclusion of overvaluation. Despite a strong historical performance, including a 10.86% return over the past year compared to the Sensex's 7.65%, the current valuation does not align with its financial fundamentals.

What does Torrent Pharma do?

Torrent Pharmaceuticals Ltd. is a major Indian pharmaceutical company specializing in chronic and sub-chronic therapeutic segments, with a market cap of Rs 106,976 Cr and recent net sales of 2,959 Cr and net profit of 498 Cr as of March 2025. Key metrics include a P/E ratio of 55.00 and a dividend yield of 1.02%.

Overview:<BR>Torrent Pharmaceuticals Ltd. is a leading player in the Indian pharmaceutical sector, focusing on chronic and sub-chronic therapeutic segments within the Pharmaceuticals & Biotechnology industry and categorized as a Large Cap company.<BR><BR>History:<BR>Torrent Pharmaceuticals Ltd. was incorporated in the year N/A. The latest quarterly results reported net sales and profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>Most recent Net Sales: 2,959 Cr (Quarterly Results - Mar 2025) <BR>Most recent Net Profit: 498 Cr (Quarterly Results - Mar 2025) <BR>Market-cap value: Rs 106,976 Cr (Large Cap) <BR><BR>Key Metrics:<BR>P/E: 55.00 <BR>Industry P/E: 35 <BR>Dividend Yield: 1.02% <BR>Debt-Equity: 0.33 <BR>Return on Equity: 25.41% <BR>Price to Book: 14.02 <BR><BR>Contact Details:<BR>Address: Torrent House, Off Ashram Road Ahmedabad Gujarat : 380009 <BR>Phone: 91-79-26599000 <BR>Email: investorservices@torrentpharma.com <BR>Website: http://www.torrentpharma.com

Who are in the management team of Torrent Pharma?

As of March 2023, Torrent Pharma's management team includes Sudhir Mehta (Chairman Emeritus), Samir Mehta (Executive Chairman), and several independent directors, along with key operational and compliance roles. They oversee the company's operations and strategic direction.

As of March 2023, the management team of Torrent Pharma includes the following members:<BR><BR>1. Sudhir Mehta - Chairman Emeritus<BR>2. Samir Mehta - Executive Chairman<BR>3. Shailesh Haribhakti - Independent Director<BR>4. H Khaitan - Independent Director<BR>5. Ameera Shah - Independent Director<BR>6. Nayantara Bali - Independent Director<BR>7. Jinesh Shah - Director (Operation)<BR>8. Maurice Chagnaud - Independent Director<BR>9. Aman Mehta - Whole Time Director<BR>10. Manish Choksi - Independent Director<BR>11. Chintan Trivedi - Company Secretary & Compliance Officer<BR><BR>This team is responsible for overseeing the operations and strategic direction of the company.

What is the bonus history of the Torrent Pharma?

Torrent Pharmaceuticals has issued bonuses to shareholders, with the most recent being a 1:1 bonus on July 8, 2022, and a previous 1:1 bonus on July 23, 2013. This practice demonstrates the company's commitment to rewarding its shareholders.

Torrent Pharmaceuticals has a history of issuing bonuses to its shareholders. The most recent bonus was a 1:1 bonus issue, which was announced with an ex-date of July 8, 2022, and a record date of July 11, 2022. Prior to that, the company also issued a 1:1 bonus on July 23, 2013, with a record date of July 24, 2013. This consistent practice of bonus issues reflects the company's commitment to rewarding its shareholders.

Has Torrent Pharma declared dividend?

Yes, Torrent Pharmaceuticals Ltd. has declared a 520% dividend, amounting to ₹26 per share, with an ex-date of January 31, 2025. The company has shown strong total returns over various periods, particularly in the long term.

Torrent Pharmaceuticals Ltd. has declared a 520% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 520%<BR>- Amount per share: 26 per share<BR>- Ex-date: 31 Jan 25<BR><BR>Dividend Yield: 1.02%.<BR><BR>Total Returns by Period:<BR>In the 6-month period, the price return was -5.18%, the dividend return was 0.78%, resulting in a total return of -4.4%.<BR><BR>For the 1-year period, the price return was 13.48%, the dividend return was 1.12%, leading to a total return of 14.6%.<BR><BR>Over the 2-year period, the price return was 76.44%, the dividend return was 3.34%, culminating in a total return of 79.78%.<BR><BR>In the 3-year period, the price return was 127.44%, the dividend return was 5.39%, resulting in a total return of 132.83%.<BR><BR>For the 4-year period, the price return was 124.57%, the dividend return was 7.42%, leading to a total return of 131.99%.<BR><BR>In the 5-year period, the price return was 166.6%, the dividend return was 12.25%, culminating in a total return of 178.85%.<BR><BR>Overall, Torrent Pharmaceuticals has declared a substantial dividend, and the total returns over various periods indicate strong performance, particularly in the longer term, suggesting a positive outlook for investors.

Who are the peers of the Torrent Pharma?

Torrent Pharma's peers include Sun Pharma, Divi's Lab, Cipla, Dr Reddy's Labs, Mankind Pharma, Zydus Lifesciences, Lupin, Aurobindo Pharma, Abbott India, and Alkem Lab. In terms of management risk, growth, and capital structure, Torrent Pharma is rated as good, with a 1-year return of 17.01%.

Peers: The peers of Torrent Pharma are Sun Pharma.Inds., Divi's Lab., Cipla, Dr Reddy's Labs, Mankind Pharma, Zydus Lifesci., Lupin, Aurobindo Pharma, Abbott India, and Alkem Lab.<BR><BR>Quality Snapshot: Excellent management risk is observed at Sun Pharma.Inds., Cipla, Dr Reddy's Labs, Mankind Pharma, Zydus Lifesci., Aurobindo Pharma, Abbott India, and Alkem Lab, while Average management risk is found at Lupin. Good management risk is noted for Torrent Pharma, Divi's Lab., and the rest. For growth, Excellent growth is seen at Sun Pharma.Inds., Cipla, Dr Reddy's Labs, Mankind Pharma, Zydus Lifesci., and Lupin, while Below Average growth is noted for Torrent Pharma, Divi's Lab., Aurobindo Pharma, and Alkem Lab. Excellent capital structure is observed at Sun Pharma.Inds., Divi's Lab., Cipla, Dr Reddy's Labs, Mankind Pharma, Zydus Lifesci., and Aurobindo Pharma, while Good capital structure is found at Torrent Pharma and Lupin.<BR><BR>Return Snapshot: Divi's Lab. has the highest 1-year return at 51.96%, while Zydus Lifesci. has the lowest at -9.94%. Torrent Pharma's 1-year return is 17.01%, which is higher than Zydus Lifesci. but lower than Divi's Lab. Additionally, the peers with negative six-month returns include Zydus Lifesci., Aurobindo Pharma, Mankind Pharma, and Alkem Lab.

Who are the top shareholders of the Torrent Pharma?

The top shareholders of Torrent Pharma include Torrent Investments Limited with 68.31%, followed by institutional investors such as mutual funds at 5.03% and foreign institutional investors at 16.31%. The highest public shareholder is NPS Trust at 1.8%, while individual investors hold 4.51% of the shares, with no pledged promoter holdings reported.

The top shareholders of Torrent Pharma are primarily the promoters, with Torrent Investments Limited holding the largest share at 68.31%. Additionally, institutional investors play a significant role, with 38 mutual funds collectively holding 5.03% and 819 foreign institutional investors (FIIs) holding 16.31%. The highest public shareholder is NPS Trust, which holds 1.8%, while individual investors account for 4.51% of the shares. There are no pledged promoter holdings reported.

How big is Torrent Pharma?

As of 24th July, Torrent Pharmaceuticals Ltd. has a market capitalization of 120,012.00 Cr, with recent net sales of 11,516.00 Cr and a net profit of 1,911.00 Cr. The company has shareholder's funds of 7,590.69 Cr and total assets of 14,395.59 Cr.

As of 24th July, Torrent Pharmaceuticals Ltd. has a market capitalization of 120,012.00 Cr and is classified as a Large Cap company.<BR><BR>In the latest four quarters, Torrent Pharmaceuticals reported Net Sales of 11,516.00 Cr and a Net Profit of 1,911.00 Cr.<BR><BR>For the reporting period of March 2025, the company has Shareholder's Funds amounting to 7,590.69 Cr and Total Assets of 14,395.59 Cr.

When is the next results date for Torrent Pharma?

The next results date for Torrent Pharma is November 7, 2025.

The next results date for Torrent Pharma is scheduled for November 7, 2025.

Are Torrent Pharma latest results good or bad?

Torrent Pharmaceuticals' latest Q2 FY26 results are strong, with a net profit of ₹591 crore (up 30.46%) and revenue of ₹3,302 crore (up 14.30%). Despite a muted market reaction, the company's impressive operating margin of 33.36% and return on equity of 25.41% indicate solid operational performance and a strong foundation for future growth.

Torrent Pharmaceuticals' latest results for Q2 FY26 indicate a strong performance overall. The company reported a net profit of ₹591 crore, which reflects a significant year-on-year increase of 30.46%. Revenue also showed healthy growth, reaching ₹3,302 crore, marking a 14.30% increase compared to the same quarter last year.<BR><BR>The operating margin stands at an impressive 33.36%, which is industry-leading, and the return on equity (ROE) is a robust 25.41%, showcasing excellent efficiency in generating returns from shareholder capital. The profit after tax margin has also improved to 18.21%, up from 16.00% in the same quarter last year.<BR><BR>Despite these positive results, the stock experienced a muted market reaction, likely due to valuation concerns rather than operational disappointments. The company has shown consistent operational momentum, and its financial metrics suggest a solid foundation for future growth. Overall, the results can be characterized as good, reflecting strong operational performance in a challenging sector environment.

How has been the historical performance of Torrent Pharma?

Torrent Pharma has shown consistent growth in net sales and profits, with net sales increasing from INR 7,673 crore in March 2019 to INR 11,516 crore in March 2025, and profit after tax rising from INR 436 crore to INR 1,911 crore during the same period. The company also improved its operating profit margin to 32.88% and maintained a solid balance sheet.

Answer:<BR>The historical performance of Torrent Pharma shows a consistent growth trajectory in net sales and profits over the years.<BR><BR>Breakdown:<BR>Torrent Pharma's net sales have steadily increased from INR 7,673.00 crore in March 2019 to INR 11,516.00 crore in March 2025. The total operating income followed a similar trend, rising from INR 7,673.00 crore in March 2019 to INR 11,516.00 crore in March 2025. The company's operating profit (PBDIT) also saw growth, climbing from INR 2,041.00 crore in March 2019 to INR 3,744.00 crore in March 2025, reflecting an improving operating profit margin that reached 32.88% in March 2025. Profit before tax increased from INR 562.00 crore in March 2019 to INR 2,673.00 crore in March 2025, while profit after tax rose from INR 436.00 crore to INR 1,911.00 crore during the same period, resulting in a PAT margin of 16.89% in March 2025. On the balance sheet, total assets increased from INR 13,576.53 crore in March 2020 to INR 14,395.59 crore in March 2025, while total liabilities decreased from INR 14,505.45 crore in March 2024 to INR 14,395.59 crore in March 2025. The cash flow from operating activities showed a positive trend, reaching INR 2,585.00 crore in March 2025, although the net cash flow reflected an outflow of INR 261.00 crore in the same year. Overall, Torrent Pharma has demonstrated strong growth in revenue and profitability, alongside a solid balance sheet position.

Is Torrent Pharma technically bullish or bearish?

As of December 1, 2025, the market trend is mildly bullish, supported by daily moving averages and weekly MACD, but tempered by mildly bearish monthly indicators and market indecision.

As of 1 December 2025, the technical trend has changed from bullish to mildly bullish. The current stance is mildly bullish, driven primarily by the daily moving averages indicating bullish momentum and the weekly MACD also showing a bullish signal. However, the monthly MACD and KST are mildly bearish, suggesting some caution. Bollinger Bands are bullish on both weekly and monthly time frames, supporting the overall positive outlook. The lack of clear trends in Dow Theory and OBV indicates some indecision in the market. Overall, while there are bullish indicators, the presence of mildly bearish signals suggests a tempered bullish sentiment.

Should I buy, sell or hold Torrent Pharma?

Which are the latest news on Torrent Pharma?

Why is Torrent Pharma falling/rising?

As of 04-Dec, Torrent Pharmaceuticals Ltd. is seeing its stock price rise to 3,803.20, up 2.29%. This increase is driven by strong performance metrics, outpacing the benchmark Sensex, and solid fundamentals despite a decrease in investor participation.

As of 04-Dec, Torrent Pharmaceuticals Ltd. is experiencing a rise in its stock price, currently at 3,803.20, reflecting an increase of 85.25 (2.29%). This upward movement can be attributed to several factors highlighted in the recent performance data. <BR><BR>The stock has outperformed the benchmark Sensex, showing a 1.80% increase over the past week while the Sensex has declined by 0.53%. Over the past month, Torrent Pharma has risen by 6.33%, compared to the Sensex's 2.16% gain. Year-to-date, the stock has achieved a 13.34% increase, significantly outpacing the Sensex's 9.12% rise. Additionally, the stock has shown remarkable growth over longer periods, with a 134.82% increase over three years and a 185.45% increase over five years.<BR><BR>Today's performance indicates that the stock is close to its 52-week high, being only 2.03% away from Rs 3,880.55. It has also shown resilience by gaining after two consecutive days of decline, indicating a potential trend reversal. The stock reached an intraday high of Rs 3,805, which is a 2.34% increase. Furthermore, it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a strong bullish trend.<BR><BR>Despite a noted decrease in investor participation, with delivery volume falling by 31.71% against the 5-day average, the stock remains liquid enough for trading. The company's strong fundamentals, including high management efficiency, a low debt-to-EBITDA ratio, and consistent positive results over the last nine quarters, contribute to investor confidence. High institutional holdings at 25.2% further support the stock's stability, as these investors typically have better resources for analyzing company fundamentals.<BR><BR>In summary, the combination of strong performance metrics, positive market trends, and solid fundamentals is driving the rise in Torrent Pharmaceuticals' stock price.