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5004

Torrent PharmaceuticalsBSE:500420 Stock Report

Market Cap

₹504.2b

7D

-4.8%

1Y

10.2%

Updated

20 Oct, 2021

Data

Company Financials +
500420 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends4/6

500420 Overview

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

Torrent Pharmaceuticals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Torrent Pharmaceuticals
Historical stock prices
Current Share Price₹2,979.60
52 Week High₹2,311.30
52 Week Low₹3,248.00
Beta0.28
1 Month Change-2.28%
3 Month Change-1.09%
1 Year Change10.22%
3 Year Change85.77%
5 Year Change90.29%
Change since IPO4,667.36%

Recent News & Updates

Shareholder Returns

500420IN PharmaceuticalsIN Market
7D-4.8%-1.7%1.2%
1Y10.2%21.4%65.9%

Return vs Industry: 500420 underperformed the Indian Pharmaceuticals industry which returned 21.4% over the past year.

Return vs Market: 500420 underperformed the Indian Market which returned 65.9% over the past year.

Price Volatility

Is 500420's price volatile compared to industry and market?
500420 volatility
500420 Beta0.28
Industry Beta0.60
Market Beta1

Stable Share Price: 500420 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 500420's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195913,505Samir Mehtahttps://www.torrentpharma.com

Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India, the United States, Germany, Brazil, and internationally. It offers products in various therapeutic areas, including cardiovascular, central nervous system, gastrointestinal, women healthcare, diabetology, pain management, gynecology, oncology, and anti-infective, as well as provides vitamins, minerals, and nutrients. The company also offers contract manufacturing services.

Torrent Pharmaceuticals Fundamentals Summary

How do Torrent Pharmaceuticals's earnings and revenue compare to its market cap?
500420 fundamental statistics
Market Cap₹504.22b
Earnings (TTM)₹12.61b
Revenue (TTM)₹80.83b

40.0x

P/E Ratio

6.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
500420 income statement (TTM)
Revenue₹80.83b
Cost of Revenue₹21.99b
Gross Profit₹58.83b
Expenses₹46.23b
Earnings₹12.61b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)74.51
Gross Margin72.79%
Net Profit Margin15.60%
Debt/Equity Ratio84.4%

How did 500420 perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

47%

Payout Ratio

Valuation

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

39.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500420 (₹2979.6) is trading above our estimate of fair value (₹2211.52)

Significantly Below Fair Value: 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 (40x) compared to the Indian Pharmaceuticals industry average (25.6x).

PE vs Market: 500420 is poor value based on its PE Ratio (40x) compared to the Indian market (21.9x).


Price to Earnings Growth Ratio

PEG Ratio: 500420 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 500420 is overvalued based on its PB Ratio (8.6x) compared to the IN Pharmaceuticals industry average (3.2x).


Future Growth

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

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500420's forecast earnings growth (17.2% per year) is above the savings rate (6.7%).

Earnings vs Market: 500420's earnings (17.2% per year) are forecast to grow slower than the Indian market (19.1% per year).

High Growth Earnings: 500420's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500420's revenue (11.3% per year) is forecast to grow slower than the Indian market (12.8% per year).

High Growth Revenue: 500420's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500420's Return on Equity is forecast to be high in 3 years time (22.4%)


Past Performance

How has Torrent Pharmaceuticals performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500420 has high quality earnings.

Growing Profit Margin: 500420's current net profit margins (15.6%) are higher than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: 500420's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: 500420's earnings growth over the past year (11.6%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: 500420 earnings growth over the past year (11.6%) underperformed the Pharmaceuticals industry 35.8%.


Return on Equity

High ROE: 500420's Return on Equity (21.6%) is considered high.


Financial Health

How is Torrent Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: 500420's short term assets (₹55.2B) exceed its short term liabilities (₹48.9B).

Long Term Liabilities: 500420's short term assets (₹55.2B) exceed its long term liabilities (₹33.5B).


Debt to Equity History and Analysis

Debt Level: 500420's debt to equity ratio (84.4%) is considered high.

Reducing Debt: 500420's debt to equity ratio has increased from 70.1% to 84.4% over the past 5 years.

Debt Coverage: 500420's debt is well covered by operating cash flow (40.8%).

Interest Coverage: 500420's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Dividend

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

1.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500420's dividend (1.01%) is higher than the bottom 25% of dividend payers in the Indian market (0.33%).

High Dividend: 500420's dividend (1.01%) is low compared to the top 25% of dividend payers in the Indian market (1.38%).


Stability and Growth of Payments

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 reasonably low payout ratio (47%), 500420's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500420's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average board tenure


CEO

Samir Mehta (57 yo)

no data

Tenure

₹200,040,000

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 ($USD2.66M) is above average for companies of similar size in the Indian market ($USD812.90K).

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


Board Members

Experienced Board: 500420's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Torrent Pharmaceuticals Limited's 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: ₹504.216b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 15:15
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.