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INVESTMENT INSIGHTS

Check Before You Invest : Torrent Pharmaceuticals Ltd

BSE: 500420 NSE: TORNTPHARM ISIN: INE685A01028
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Torrent Pharmaceuticals Ltd belong to?
Torrent Pharmaceuticals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Torrent Pharmaceuticals Ltd a good quality company?
Torrent Pharmaceuticals Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Torrent Pharmaceuticals Ltd undervalued or overvalued?
Torrent Pharmaceuticals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Torrent Pharmaceuticals Ltd a good buy now?
Torrent Pharmaceuticals Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd revenue growth is 7.4% for FY-2025 , which is below its 5 year CAGR of 7.7% , indicating slower growth.
Q.2 Gross Profit margin of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.7% for FY-2025 , which is above its 5 year median of 15.7% , indicating increasing margins.
Q.3 Operating Profit Margin of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 32.31% for FY-2025 , which is above its 5 year median of 30.98% indicating increasing margins.
Q.4 Net Profit Margin of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd Net Profit Margin is 16.6% for FY-2025 , is above with its 5 year median of 15.44%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 20.7 15.7
Operating Profit Margin 32.31 30.98
Net Profit Margin 16.6 15.44
Q.5 Return on Asset of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd Return on Asset is 13.23%, which is above its 5 year historical median of 9.2%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd Return on equity is 26.46% for FY-2025 , which is above its historical median of 23.49%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd Return on capital employed is 27.32% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd Cash conversion cycle is 1 days, above its historical median of -4 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.17 1.16
ROE 26.46 23.49
ROCE 27.32 20.32
Cash Conversion Cycle 1 days -4 days
Q.9 Debt to Equity ratio of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd Debt-to-Equity ratio is 0.40 , which is above with the industry average of 0.35 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Torrent Pharmaceuticals Ltd?
Torrent Pharmaceuticals Ltd Debt to cash flow from operations is 1.17 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Torrent Pharmaceuticals Ltd?
Promoters hold 68.31% of the Torrent Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Torrent Pharmaceuticals Ltd vs industry peers?
Torrent Pharmaceuticals Ltd revenue CAGR is 7.72% , compared to the industry median CAGR of 10.76% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 11,516.1 26,752.9
Gross Profit 2,383.8 7,512.8
Operating Profit 3,704 7,224.5
Net Profit 1,911 5,272.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.17 0.89
ROE 26.46 19.42
ROCE 27.32 19.32
Cash Conversion Cycle (days) 0.88 111

Valuation & price assessment

Q.1 Stock return of Torrent Pharmaceuticals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 19% 26.2% 38.2% 28.6%
Q.3 Valuation ratios of Torrent Pharmaceuticals Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 61.91 40.88 40.28
Price to Book 15.49 8.98 2.77
Price to Sales 11.22 5.91 2.65
EV to EBITDA 35.01 21.44 15.67

Check more companies

1. Sun Pharma Inds.
2. Divis Lab
3. Torrent Pharma
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