Why 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 1.01 times
3
With a growth in Net Profit of 7.45%, the company declared Very Positive results in Dec 25
- The company has declared positive results for the last 10 consecutive quarters
- OPERATING PROFIT TO INTEREST(Q) Highest at 24.18 times
- ROCE(HY) Highest at 27.85%
- NET SALES(Q) Highest at Rs 3,303.00 cr
4
High Institutional Holdings at 25.28%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
- It is ranked 3 across all Large Cap and 34 across the entire market
6
Consistent Returns over the last 3 years
- Along with generating 30.92% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
How much should you buy?
- 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
29.77%
1.45
21.29%
Sensex
-5.41%
-0.37
12.65%
Quality 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
25.28%
ROCE (avg)
23.21%
ROE (avg)
22.06%
Valuation Key Factors 
Factor
Value
P/E Ratio
63
Industry P/E
32
Price to Book Value
17.18
EV to EBIT
43.86
EV to EBITDA
35.31
EV to Capital Employed
14.05
EV to Sales
11.55
PEG Ratio
2.63
Dividend Yield
0.68%
ROCE (Latest)
30.43%
ROE (Latest)
25.66%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Bullish
Bullish
OBV
No Trend
Bullish
Technical Movement
21What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 24.18 times
ROCE(HY)
Highest at 27.85%
NET SALES(Q)
Highest at Rs 3,303.00 cr
PBDIT(Q)
Highest at Rs 1,088.00 cr.
PBT LESS OI(Q)
Highest at Rs 837.00 cr.
PAT(Q)
Highest at Rs 642.80 cr.
DEBT-EQUITY RATIO(HY)
Lowest at 0.33 times
OPERATING PROFIT TO NET SALES(Q)
Highest at 32.94%
EPS(Q)
Highest at Rs 18.76
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.51 times
Loading Valuation Snapshot...
Here's what is working for Torrent Pharma
Operating Profit to Interest - Quarterly
Highest at 24.18 times and Grown
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 3,303.00 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 1,088.00 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 837.00 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 642.80 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 32.94%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Earnings per Share (EPS) - Quarterly
Highest at Rs 18.76
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Lowest at 0.33 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Torrent Pharma
Debtors Turnover Ratio- Half Yearly
Lowest at 5.51 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






