Torrent Pharmaceuticals Limited

BSE:500420 Stock Report

Market Cap: ₹958.0b

Torrent Pharmaceuticals Valuation

Is 500420 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500420 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500420 (₹2838.65) is trading above our estimate of fair value (₹1171.21)

Significantly Below Fair Value: 500420 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500420?

Other financial metrics that can be useful for relative valuation.

500420 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.2x
Enterprise Value/EBITDA29.2x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does 500420's PE Ratio compare to its peers?

The above table shows the PE ratio for 500420 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.3x
500124 Dr. Reddy's Laboratories
18.1x-2.0%₹1.0t
ZYDUSLIFE Zydus Lifesciences
28.3x4.4%₹1.1t
MANKIND Mankind Pharma
45.3x16.0%₹867.9b
CIPLA Cipla
29.5x9.2%₹1.2t
500420 Torrent Pharmaceuticals
58x20.4%₹958.0b

Price-To-Earnings vs Peers: 500420 is expensive based on its Price-To-Earnings Ratio (58x) compared to the peer average (30.3x).


Price to Earnings Ratio vs Industry

How does 500420's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 500420 is expensive based on its Price-To-Earnings Ratio (58x) compared to the Indian Pharmaceuticals industry average (32.8x).


Price to Earnings Ratio vs Fair Ratio

What is 500420's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500420 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio58x
Fair PE Ratio44.7x

Price-To-Earnings vs Fair Ratio: 500420 is expensive based on its Price-To-Earnings Ratio (58x) compared to the estimated Fair Price-To-Earnings Ratio (44.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500420 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹2,838.65
₹2,875.57
+1.3%
7.7%₹3,337.00₹2,200.00n/a30
Jun ’25₹2,696.40
₹2,850.42
+5.7%
8.6%₹3,244.00₹2,189.00n/a31
May ’25₹2,640.40
₹2,736.83
+3.7%
9.5%₹3,063.00₹2,175.00n/a30
Apr ’25₹2,678.35
₹2,722.21
+1.6%
9.4%₹3,063.00₹2,175.00n/a29
Mar ’25₹2,666.75
₹2,700.41
+1.3%
9.3%₹2,975.00₹2,175.00n/a27
Feb ’25₹2,511.80
₹2,265.96
-9.8%
11.7%₹2,855.00₹1,805.00n/a28
Jan ’25₹2,295.85
₹2,153.48
-6.2%
7.7%₹2,480.00₹1,805.00n/a29
Dec ’24₹2,151.30
₹2,134.53
-0.8%
7.2%₹2,410.00₹1,805.00n/a30
Nov ’24₹1,916.95
₹2,129.14
+11.1%
7.1%₹2,410.00₹1,805.00n/a29
Oct ’24₹1,928.35
₹2,125.93
+10.2%
8.6%₹2,410.00₹1,750.00n/a28
Sep ’24₹1,785.40
₹2,107.41
+18.0%
9.0%₹2,410.00₹1,750.00n/a29
Aug ’24₹1,980.15
₹1,885.10
-4.8%
8.2%₹2,180.00₹1,530.00n/a30
Jul ’24₹1,905.20
₹1,859.59
-2.4%
8.1%₹2,165.00₹1,530.00n/a29
Jun ’24₹1,775.15
₹1,839.41
+3.6%
8.1%₹2,030.00₹1,530.00₹2,696.4029
May ’24₹1,652.85
₹1,750.69
+5.9%
6.9%₹1,925.00₹1,520.00₹2,640.4029
Apr ’24₹1,537.35
₹1,744.31
+13.5%
6.6%₹1,915.00₹1,520.00₹2,678.3529
Mar ’24₹1,475.55
₹1,742.55
+18.1%
7.0%₹1,915.00₹1,509.00₹2,666.7531
Feb ’24₹1,533.70
₹1,742.55
+13.6%
7.0%₹1,915.00₹1,509.00₹2,511.8031
Jan ’24₹1,551.65
₹1,724.19
+11.1%
8.7%₹1,915.00₹1,385.00₹2,295.8532
Dec ’23₹1,642.00
₹1,726.58
+5.2%
8.6%₹1,915.00₹1,385.00₹2,151.3031
Nov ’23₹1,686.90
₹1,720.80
+2.0%
8.6%₹1,915.00₹1,385.00₹1,916.9530
Oct ’23₹1,558.65
₹1,691.08
+8.5%
8.8%₹1,950.00₹1,370.00₹1,928.3530
Sep ’23₹1,535.30
₹1,688.62
+10.0%
8.5%₹1,904.50₹1,370.00₹1,785.4030
Aug ’23₹1,527.30
₹1,688.62
+10.6%
8.5%₹1,904.50₹1,370.00₹1,980.1530
Jul ’23₹1,457.50
₹1,602.40
+9.9%
9.6%₹1,904.50₹1,222.50₹1,905.2030
Jun ’23₹1,408.15
₹1,597.76
+13.5%
10.2%₹1,904.50₹1,222.50₹1,775.1529

Analyst Forecast: Target price is less than 20% higher than the current share price.


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