Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India, the United States, Germany, Brazil, and internationally. More Details
Proven track record average dividend payer.
Share Price & News
How has Torrent Pharmaceuticals's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 500420 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 500420 exceeded the Indian Pharmaceuticals industry which returned 49% over the past year.
Return vs Market: 500420 exceeded the Indian Market which returned 2.4% over the past year.
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
Is Torrent Pharmaceuticals undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 500420 (₹2734.35) is trading above our estimate of fair value (₹1424.18)
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 (40.9x) compared to the IN Pharmaceuticals industry average (22.8x).
PE vs Market: 500420 is poor value based on its PE Ratio (40.9x) compared to the Indian market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: 500420 is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: 500420 is overvalued based on its PB Ratio (9.6x) compared to the IN Pharmaceuticals industry average (2.2x).
How is Torrent Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 500420's forecast earnings growth (20.9% per year) is above the savings rate (7.2%).
Earnings vs Market: 500420's earnings (20.9% per year) are forecast to grow slower than the Indian market (25.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 500420's revenue (10.6% per year) is forecast to grow slower than the Indian market (11.5% per year).
High Growth Revenue: 500420's revenue (10.6% 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 (24.2%)
How has Torrent Pharmaceuticals performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 500420 has high quality earnings.
Growing Profit Margin: 500420's current net profit margins (14.2%) are higher than last year (6.3%).
Past Earnings Growth Analysis
Earnings Trend: 500420's earnings have declined by 15.9% per year over the past 5 years.
Accelerating Growth: 500420's earnings growth over the past year (130.6%) exceeds its 5-year average (-15.9% per year).
Earnings vs Industry: 500420 earnings growth over the past year (130.6%) exceeded the Pharmaceuticals industry 14.7%.
Return on Equity
High ROE: Whilst 500420's Return on Equity (23.42%) is high, this metric is skewed due to their high level of debt.
How is Torrent Pharmaceuticals's financial position?
Financial Position Analysis
Short Term Liabilities: 500420's short term assets (₹50.1B) do not cover its short term liabilities (₹54.8B).
Long Term Liabilities: 500420's short term assets (₹50.1B) exceed its long term liabilities (₹37.3B).
Debt to Equity History and Analysis
Debt Level: 500420's debt to equity ratio (120.2%) is considered high.
Reducing Debt: 500420's debt to equity ratio has increased from 109.2% to 120.2% over the past 5 years.
Debt Coverage: 500420's debt is well covered by operating cash flow (24%).
Interest Coverage: 500420's interest payments on its debt are well covered by EBIT (3.9x coverage).
What is Torrent Pharmaceuticals's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 500420's dividend (0.62%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).
High Dividend: 500420's dividend (0.62%) is low compared to the top 25% of dividend payers in the Indian market (2.28%).
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 (25.4%), 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 (29.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Samir Mehta (56 yo)
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 ($USD2.72M) is above average for companies of similar size in the Indian market ($USD1.04M).
Compensation vs Earnings: Samir's compensation has increased by more than 20% in the past year.
|Executive Chairman & MD||no data||₹200.04m||0.00024% |
|Executive Director of Operations & Whole Time Director||0.58yr||₹25.87m||0.14% |
|Director of R&D and Whole-Time Director||20.25yrs||₹86.21m||0.00047% |
|Chairman Emeritus||6.25yrs||₹50.00m||0.00030% |
|Independent Non Executive Director||8.75yrs||₹4.10m||no data|
|Independent Non Executive Director||10yrs||₹4.35m||no data|
|Independent Director||2.17yrs||₹3.70m||no data|
|Independent Director||1.58yrs||₹4.15m||no data|
Experienced Board: 500420's board of directors are considered experienced (6.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Torrent Pharmaceuticals Limited's company bio, employee growth, exchange listings and data sources
- Name: Torrent Pharmaceuticals Limited
- Ticker: 500420
- Exchange: BSE
- Founded: 1959
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: ₹459.330b
- Shares outstanding: 169.22m
- Website: https://www.torrentpharma.com
Number of Employees
- Torrent Pharmaceuticals Limited
- Torrent House
- Off. Ashram Road
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|500420||BSE (Mumbai Stock Exchange)||Yes||Equity Shares||IN||INR||Nov 1999|
|TORNTPHARM||NSEI (National Stock Exchange of India)||Yes||Equity Shares||IN||INR||Nov 1999|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/23 12:49|
|End of Day Share Price||2020/10/23 00:00|
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.