Torrent Pharmaceuticals Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹107,202.59 crore, PE ratio of 64.72, debt-to-equity ratio of 58.66, and return on equity of 25.38%. These figures reflect the company’s financial health and current market valuation.
Content:
- Torrent Pharmaceuticals Overview
- Torrent Pharmaceuticals Financial Results
- Torrent Pharmaceuticals Financial Analysis
- Torrent Pharmaceuticals Company Metrics
- Torrent Pharmaceuticals Stock Performance
- Torrent Pharmaceuticals Peer Comparison
- Torrent Pharmaceuticals Shareholding Pattern
- Torrent Pharmaceuticals History
- How To Invest In Torrent Pharmaceuticals Ltd Share?
- Torrent Pharmaceuticals Limited Fundamental Analysis – FAQs
Torrent Pharmaceuticals Overview
Torrent Pharmaceuticals Ltd is a leading Indian pharmaceutical company. It operates in the healthcare sector, focusing on research, development, manufacturing, and distribution of pharmaceutical formulations across various therapeutic segments.
The company has a market capitalisation of ₹107,202.59 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 3.41% below its 52-week high and 78.75% above its 52-week low.
Torrent Pharmaceuticals Financial Results
Torrent Pharmaceuticals Ltd showed growth from FY 22 to FY 24, with sales increasing from ₹8,508 crore to ₹10,728 crore and net profit rising from ₹777 crore to ₹1,656 crore. The company experienced changes in OPM and EPS over the years.
1. Revenue Trend: Sales increased from ₹8,508 crore in FY 22 to ₹9,620 crore in FY 23, and further to ₹10,728 crore in FY 24, indicating strong revenue growth.
2. Equity and Liabilities: Interest expenses rose from ₹255 crore in FY 22 to ₹354 crore in FY 24, indicating increased financial liabilities. Depreciation also increased from ₹662 crore to ₹808 crore over the same period.
3. Profitability: Operating Profit Margin (OPM) improved from 29% in FY 22 to 31% in FY 24, reflecting increased operational efficiency. EBITDA saw a rise from ₹2,628 crore in FY 22 to ₹3,426 crore in FY 24.
4. Earnings per Share (EPS): EPS decreased slightly from ₹46 in FY 22 to ₹37 in FY 23, but increased to ₹49 in FY 24, indicating fluctuations in profitability per share.
5. Return on Net Worth (RoNW): While specific RoNW figures are not provided, the increase in net profit from ₹777 crore in FY 22 to ₹1,656 crore in FY 24 suggests a positive impact on RoNW, indicating improved returns on shareholders’ equity.
6. Financial Position: The company’s financial position strengthened with increasing net profit, and substantial rises in EBITDA and operating profit, indicating robust financial health and management.
Torrent Pharmaceuticals Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 10,728 | 9,620 | 8,508 |
| Expenses | 7,360 | 6,778 | 6,077 |
| Operating Profit | 3,368 | 2,842 | 2,431 |
| OPM % | 31 | 30 | 29 |
| Other Income | 146 | 45 | -288 |
| EBITDA | 3,426 | 2,887 | 2,628 |
| Interest | 354 | 333 | 255 |
| Depreciation | 808 | 707 | 662 |
| Profit Before Tax | 2,352 | 1,847 | 1,226 |
| Tax % | 30 | 33 | 37 |
| Net Profit | 1,656 | 1,245 | 777 |
| EPS | 49 | 37 | 46 |
| Dividend Payout % | 57.21 | 59.8 | 104.51 |
* Consolidated Figures in Rs. Crores
Torrent Pharmaceuticals Company Metrics
Torrent Pharmaceuticals’ market cap is ₹107,202.59 crore with a book value of ₹203 per share. The face value per share is ₹5. Total debt is ₹4,021.94 crore, ROE is 25.38%, and quarterly EBITDA is ₹928 crore. The dividend yield stands at 0.88%.
Market Capitalization: Market Capitalization represents the total market value of Torrent Pharmaceuticals’ outstanding shares, amounting to ₹107,202.59 crore.
Book Value: The book value per share of Torrent Pharmaceuticals is ₹203 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value: The face value of Torrent Pharmaceuticals’ shares is ₹5, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio: The Asset Turnover Ratio of 0.75 measures how efficiently Torrent Pharmaceuticals uses its assets to generate sales revenue or sales income.
Total Debt: The Total Debt of Torrent Pharmaceuticals stands at ₹4,021.94 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE): The ROE of 25.38% measures Torrent Pharmaceuticals’ profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q): The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Torrent Pharmaceuticals is ₹928 crore, indicating the company’s operating performance.
Dividend Yield: The dividend yield of 0.88% shows the annual dividend payment as a percentage of Torrent Pharmaceuticals’ current share price, indicating the return on investment from dividends alone.
Torrent Pharmaceuticals Stock Performance
Torrent Pharmaceuticals Ltd delivered impressive returns of 67.3% in one year, 31.9% over three years, and 32.2% over five years. This strong performance indicates the company’s ability to provide substantial returns across various investment periods, reflecting its robust market position and growth potential.
| Period | Return on Investment (%) |
| 1 Year | 67.3 |
| 3 Years | 31.9 |
| 5 Years | 32.2 |
Example: If an investor had invested ₹1,000 in Torrent Pharmaceuticals’ stock:
1 year ago, your investment would be worth ₹1,673.
3 years ago, your investment would have grown to ₹1,319.
5 years ago, your investment would have increased to approximately ₹1,322.
Torrent Pharmaceuticals Peer Comparison
Torrent Pharmaceuticals Ltd, with a CMP of ₹3,338 and a P/E ratio of 68, has a market cap of ₹1,12,982 Cr and a one-year return of 67%. Compared to peers like Ajanta Pharma (74% return) and Shilpa Medicare (103% return), Torrent shows competitive performance within the pharmaceutical sector. Marksans Pharma and Eris Lifescience also demonstrated strong returns, highlighting the sector’s overall growth.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % | 6mth return % |
| Torrent Pharma. | 3,338 | 68 | 1,12,982 | 67 | 1,42,273 | 13 | 1 | 1.02 | 27.33 | 1.91 |
| Ajanta Pharma | 2,999 | 44 | 37,761 | 74 | 2,29,590 | 36 | 1 | 1.17 | 39.07 | 5.12 |
| Gland Pharma | 2,026 | 46 | 33,386 | 23 | 3,09,870 | 0 | 1 | 8.76 | 2.35 | -4.54 |
| ERIS Lifescience | 1,198 | 43 | 16,302 | 46 | 2,84,020 | 15 | 0.99 | 0.99 | 29.69 | -3.97 |
| Caplin Point Lab | 1,501 | 24 | 11,406 | 45 | 2,30,543 | -1.22 | 0.91 | 9.33 | -1.74 | -3.3 |
| Marksans Pharma | 195 | 28 | 8,838 | 65 | 9,81,389 | 3 | 1 | 10.03 | 23.47 | 13.42 |
| Shilpa Medicare | 702 | 167 | 6,868 | 103 | 4,00,342 | 7 | 0.95 | 5.08 | 91.62 | 8.06 |
Torrent Pharmaceuticals Shareholding Pattern
Torrent Pharmaceuticals Ltd’s shareholding pattern remained stable from December 2023 to June 2024. Promoter holdings were steady at 71.25%. FII holdings slightly increased from 14.08% to 14.22%, while DII holdings rose from 7.21% to 7.27%. Retail and others’ shares decreased from 7.46% to 7.25%.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 71.25 | 71.25 | 71 |
| FII | 14.22 | 14.14 | 14.08 |
| DII | 7.27 | 7.25 | 7.21 |
| Retail & others | 7.25 | 7.34 | 7.46 |
Torrent Pharmaceuticals History
Torrent Pharmaceuticals Limited is a prominent Indian pharmaceutical company with a diverse product portfolio. The company specializes in various therapeutic segments, including the cardiovascular, central nervous system, gastrointestinal, vitamins and minerals, anti-diabetes, pain management, gynaecology and dermatology, catering to a wide range of medical needs.
Torrent Pharmaceuticals has established a strong presence in both domestic and international markets. The company engages in the entire pharmaceutical value chain, from research and development to manufacturing and distribution of branded and generic pharmaceutical formulations. This integrated approach allows Torrent to maintain quality control and adapt to market demands effectively.
The company has developed several well-known brands across different product categories. In paediatrics, brands like Tedibar and Atogla are popular, while in dermatology, Clinmiskin and ACNEMOIST have gained recognition. Torrent’s manufacturing facilities are strategically located across various Indian states, ensuring efficient production and distribution capabilities.
How To Invest In Torrent Pharmaceuticals Ltd Share?
To invest in Torrent Pharmaceuticals Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Torrent Pharmaceuticals shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Torrent Pharmaceuticals Limited Fundamental Analysis – FAQs
Fundamental analysis of Torrent Pharmaceuticals examines key financial metrics: Market Cap (₹107,202.59 crore), PE Ratio (64.72), Debt to Equity (58.66), and Return on Equity (25.38%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the pharmaceutical sector.
The market capitalization of Torrent Pharmaceuticals Ltd is ₹107,202.59 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Torrent Pharmaceuticals Limited is a leading Indian pharmaceutical company. It specializes in the research, development, manufacturing and distribution of pharmaceutical formulations across various therapeutic segments. The company has a strong presence in both domestic and international markets.
Torrent Pharmaceuticals is a public limited company, part of the Torrent Group. While the Torrent Group, through its promoter entities, owns a significant stake, it is a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Torrent Pharmaceuticals typically include the Torrent Group (promoter entities) as major stakeholders, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Torrent Pharmaceuticals operates in the pharmaceutical industry. It is primarily engaged in the research, development, manufacturing and marketing of pharmaceutical products across various therapeutic segments. The company plays a significant role in both the Indian and global pharmaceutical markets.
To invest in Torrent Pharmaceuticals shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Torrent Pharma is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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