BSE:500420

Stock Analysis Report

Executive Summary

Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India, the United States, Germany, Brazil, and internationally.

Snowflake

Fundamentals

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Torrent Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

500420

3.3%

IN Pharmaceuticals

3.2%

IN Market


1 Year Return

7.6%

500420

-17.7%

IN Pharmaceuticals

5.6%

IN Market

Return vs Industry: 500420 exceeded the Indian Pharmaceuticals industry which returned -17.7% over the past year.

Return vs Market: 500420 exceeded the Indian Market which returned 5.6% over the past year.


Shareholder returns

500420IndustryMarket
7 Day2.3%3.3%3.2%
30 Day0.7%-3.8%6.0%
90 Day11.0%-1.8%2.0%
1 Year8.7%7.6%-17.0%-17.7%7.8%5.6%
3 Year9.4%6.1%-25.6%-27.2%22.6%16.3%
5 Year109.2%95.6%-10.9%-13.6%43.1%29.6%

Price Volatility Vs. Market

How volatile is Torrent Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Torrent Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

58.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 500420 (₹1682.25) is trading above our estimate of fair value (₹1236.55)

Significantly Undervalued: 500420 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500420 is poor value based on its PE Ratio (58.3x) compared to the Pharmaceuticals industry average (15.7x).

PE vs Market: 500420 is poor value based on its PE Ratio (58.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 500420 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 500420 is overvalued based on its PB Ratio (6x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Torrent Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500420's forecast earnings growth (27.3% per year) is above the savings rate (7.6%).

Earnings vs Market: 500420's earnings (27.3% per year) are forecast to grow faster than the Indian market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500420's revenue (10.4% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 500420's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 500420's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Torrent Pharmaceuticals performed over the past 5 years?

-11.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500420's earnings have declined by -11.7% per year over the past 5 years.

Accelerating Growth: 500420's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500420 had negative earnings growth (-25.1%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.4%).


Return on Equity

High ROE: 500420's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: 500420's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 500420's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Torrent Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: 500420's short term assets (₹50.4B) do not cover its short term liabilities (₹51.7B)

Long Term Liabilities: 500420's short term assets (50.4B) exceeds its long term liabilities (42.3B)


Debt to Equity History and Analysis

Debt Level: 500420's debt to equity ratio (128.1%) is considered high

Reducing Debt: 500420's debt to equity ratio has increased from 60.2% to 128.1% over the past 5 years.

Debt Coverage: 500420's debt is well covered by operating cash flow (29.7%).

Interest Coverage: 500420's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: 500420 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500420's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Torrent Pharmaceuticals's current dividend yield, its reliability and sustainability?

1.01%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500420's dividend (1.01%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500420's dividend (1.01%) is low compared to the top 25% of dividend payers in the Indian market (2.43%).

Stable Dividend: 500420's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500420's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), 500420's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500420's dividends in 3 years are forecast to be well covered by earnings (29.8% payout ratio).


Next Steps

Management

What is the CEO of Torrent Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average board tenure


CEO

Samir Mehta (55yo)

0yrs

Tenure

₹150,040,000

Compensation

Mr. Samir Uttamlal Mehta, B.Com., MBA serves as a Managing Director of Torrent Pharmaceuticals Limited since 1989. Mr. Mehta served as Managing Director of Torrent Power Limited. Mr. Mehta has been associa ...


CEO Compensation Analysis

Compensation vs. Market: Samir's total compensation ($USD2.11M) is about average for companies of similar size in the Indian market ($USD817.70K).

Compensation vs Earnings: Samir's compensation has been consistent with company performance over the past year.


Board Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 500420's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹1,993,73815 Nov 18
Ameera Shah
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,200
Max Price₹1,661.45

Ownership Breakdown


Management Team

  • Samir Mehta (55yo)

    Executive Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹150.04m
  • Chaitanya Dutt (69yo)

    Director of R&D and Whole-Time Director

    • Tenure: 19.3yrs
    • Compensation: ₹74.86m
  • R. Chandrashekhar (50yo)

    Vice President of Procurement

    • Tenure: 0yrs
    • Compensation: ₹7.43m
  • Mahesh Agrawal (55yo)

    VP of Legal

    • Tenure: 0yrs
    • Compensation: ₹10.44m
  • Jaydip Bhatt (66yo)

    Vice President of Human Resource

    • Tenure: 0yrs
    • Compensation: ₹6.56m
  • Dhruv Gulati (62yo)

    Chief Marketing Officer

    • Tenure: 0yrs
    • Compensation: ₹17.24m
  • H. Guttikar (56yo)

    Vice President of Projects

    • Tenure: 0yrs
    • Compensation: ₹6.98m
  • Ashish Hajarnish (51yo)

    Vice President of Works

    • Tenure: 0yrs
    • Compensation: ₹8.25m
  • Sudhir Menon (47yo)

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: ₹11.72m
  • Jinesh Shah (42yo)

    Executive Director of Operations

    • Tenure: 0yrs

Board Members

  • Samir Mehta (55yo)

    Executive Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹150.04m
  • Sudhir Mehta (65yo)

    Chairman Emeritus

    • Tenure: 5.3yrs
    • Compensation: ₹50.00m
  • Chaitanya Dutt (69yo)

    Director of R&D and Whole-Time Director

    • Tenure: 19.3yrs
    • Compensation: ₹74.86m
  • Haigreve Khaitan (49yo)

    Independent Non Executive Director

    • Tenure: 7.8yrs
    • Compensation: ₹3.10m
  • Shailesh Haribhakti (63yo)

    Independent Non Executive Director

    • Tenure: 9yrs
    • Compensation: ₹3.50m
  • Ameera Shah (39yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: ₹1.50m
  • Nayantara Bali (53yo)

    Independent Director

    • Tenure: 0.6yrs

Company Information

Torrent Pharmaceuticals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Torrent Pharmaceuticals Limited
  • Ticker: 500420
  • Exchange: BSE
  • Founded: 1959
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹286.899b
  • Shares outstanding: 169.22m
  • Website: https://www.torrentpharma.com

Number of Employees


Location

  • Torrent Pharmaceuticals Limited
  • Torrent House
  • Off. Ashram Road
  • Ahmedabad
  • Gujarat
  • 380009
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500420BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1999
TORNTPHARMNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1999

Biography

Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India, the United States, Germany, Brazil, and internationally.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.