ScoreWhy is Torrent Pharmaceuticals Ltd. ?
1
High Management Efficiency with a high ROCE of 24.08%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.71 times
3
Poor long term growth as Net Sales has grown by an annual rate of 9.72% over the last 5 years
- PAT(Q) At Rs 409.41 cr has Fallen at -29.0% (vs previous 4Q average)
- ROCE(HY) Lowest at 14.29%
- OPERATING PROFIT TO INTEREST (Q) Lowest at 5.75 times
4
With ROCE of 30.4, it has a Very Expensive valuation with a 14.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 45.40%, its profits have risen by 23.9% ; the PEG ratio of the company is 2.8
5
High Institutional Holdings at 25.25%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Returns over the last 3 years
- Along with generating 45.40% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Torrent Pharma should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Torrent Pharma for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Torrent Pharma
44.35%
2.29
19.81%
Sensex
-6.64%
-0.51
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.72%
EBIT Growth (5y)
13.39%
EBIT to Interest (avg)
9.32
Debt to EBITDA (avg)
1.40
Net Debt to Equity (avg)
0.24
Sales to Capital Employed (avg)
0.92
Tax Ratio
24.47%
Dividend Payout Ratio
56.67%
Pledged Shares
0
Institutional Holding
25.25%
ROCE (avg)
23.21%
ROE (avg)
22.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
66
Industry P/E
34
Price to Book Value
18.00
EV to EBIT
45.94
EV to EBITDA
36.99
EV to Capital Employed
14.71
EV to Sales
12.10
PEG Ratio
2.76
Dividend Yield
0.65%
ROCE (Latest)
30.43%
ROE (Latest)
25.66%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
NET SALES(Q)
Highest at Rs 4,197.00 cr
PBDIT(Q)
Highest at Rs 1,356.00 cr.
-27What is not working for the Company
PAT(Q)
At Rs 409.41 cr has Fallen at -29.0% (vs previous 4Q average
ROCE(HY)
Lowest at 14.29%
OPERATING PROFIT TO INTEREST (Q)
Lowest at 5.75 times
DEBT-EQUITY RATIO(HY)
Highest at 1.79 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.54 times
INTEREST(Q)
Highest at Rs 236.00 cr
PBT LESS OI(Q)
Lowest at Rs 612.00 cr.
EPS(Q)
Lowest at Rs 10.75
Loading Valuation Snapshot...
Here's what is working for Torrent Pharma
Net Sales - Quarterly
Highest at Rs 4,197.00 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 1,356.00 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Net Sales - Quarterly
At Rs 4,197.00 cr has Grown at 31.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 3,185.50 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Torrent Pharma
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 612.00 cr has Fallen at -22.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 787.50 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 409.41 cr has Fallen at -29.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 576.87 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 236.00 cr has Grown at 424.44%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 5.75 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 236.00 cr
in the last five quarters and Increased by 424.44 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 612.00 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 10.75
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 1.79 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 4.54 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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