Torrent Pharmaceuticals
Market Cap
₹398.1b
Last Updated
2020/07/13 12:59 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record 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
Stable Share Price: TORNTPHARM has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.5%
TORNTPHARM
1.1%
IN Pharmaceuticals
1.1%
IN Market
1 Year Return
52.2%
TORNTPHARM
28.4%
IN Pharmaceuticals
-6.2%
IN Market
Return vs Industry: TORNTPHARM exceeded the Indian Pharmaceuticals industry which returned 28.4% over the past year.
Return vs Market: TORNTPHARM exceeded the Indian Market which returned -6.2% over the past year.
Shareholder returns
| TORNTPHARM | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 1.1% | 1.1% |
| 30 Day | -5.1% | 3.1% | 7.3% |
| 90 Day | -0.7% | 11.7% | 19.2% |
| 1 Year | 54.7%52.2% | 30.4%28.4% | -4.4%-6.2% |
| 3 Year | 88.9%82.2% | 7.0%4.0% | -2.3%-6.9% |
| 5 Year | 90.1%76.6% | -8.9%-12.1% | 22.2%12.9% |
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
3 weeks ago | Simply Wall St
Torrent Pharmaceuticals (NSE:TORNTPHARM) Shareholders Have Enjoyed An Impressive 115% Share Price Gain1 month ago | Simply Wall St
Does Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) Create Value For Shareholders?2 months ago | Simply Wall St
These 4 Measures Indicate That Torrent Pharmaceuticals (NSE:TORNTPHARM) Is Using Debt Reasonably WellValuation
Is Torrent Pharmaceuticals undervalued compared to its fair value and its price relative to the market?
38.97x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TORNTPHARM (₹2359.6) is trading above our estimate of fair value (₹1683.79)
Significantly Below Fair Value: TORNTPHARM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TORNTPHARM is poor value based on its PE Ratio (39x) compared to the IN Pharmaceuticals industry average (20.5x).
PE vs Market: TORNTPHARM is poor value based on its PE Ratio (39x) compared to the Indian market (12.6x).
Price to Earnings Growth Ratio
PEG Ratio: TORNTPHARM is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: TORNTPHARM is overvalued based on its PB Ratio (8.3x) compared to the IN Pharmaceuticals industry average (1.7x).
Next Steps
Future Growth
How is Torrent Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
16.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TORNTPHARM's forecast earnings growth (16.6% per year) is above the savings rate (7.2%).
Earnings vs Market: TORNTPHARM's earnings (16.6% per year) are forecast to grow slower than the Indian market (19.7% per year).
High Growth Earnings: TORNTPHARM's earnings are forecast to grow, but not significantly.
Revenue vs Market: TORNTPHARM's revenue (9.1% per year) is forecast to grow faster than the Indian market (7.5% per year).
High Growth Revenue: TORNTPHARM's revenue (9.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TORNTPHARM's Return on Equity is forecast to be high in 3 years time (26.5%)
Next Steps
Past Performance
How has Torrent Pharmaceuticals performed over the past 5 years?
-16.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TORNTPHARM has high quality earnings.
Growing Profit Margin: TORNTPHARM's current net profit margins (12.9%) are higher than last year (5.7%).
Past Earnings Growth Analysis
Earnings Trend: TORNTPHARM's earnings have declined by -16.6% per year over the past 5 years.
Accelerating Growth: TORNTPHARM's earnings growth over the past year (134.6%) exceeds its 5-year average (-16.6% per year).
Earnings vs Industry: TORNTPHARM earnings growth over the past year (134.6%) exceeded the Pharmaceuticals industry 18.6%.
Return on Equity
High ROE: Whilst TORNTPHARM's Return on Equity (21.25%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Torrent Pharmaceuticals's financial position?
Financial Position Analysis
Short Term Liabilities: TORNTPHARM's short term assets (₹50.1B) do not cover its short term liabilities (₹54.8B).
Long Term Liabilities: TORNTPHARM's short term assets (₹50.1B) exceed its long term liabilities (₹37.3B).
Debt to Equity History and Analysis
Debt Level: TORNTPHARM's debt to equity ratio (120.2%) is considered high.
Reducing Debt: TORNTPHARM's debt to equity ratio has increased from 110.5% to 120.2% over the past 5 years.
Debt Coverage: TORNTPHARM's debt is well covered by operating cash flow (24%).
Interest Coverage: TORNTPHARM's interest payments on its debt are well covered by EBIT (3.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Torrent Pharmaceuticals's current dividend yield, its reliability and sustainability?
0.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TORNTPHARM's dividend (0.72%) is higher than the bottom 25% of dividend payers in the Indian market (0.69%).
High Dividend: TORNTPHARM's dividend (0.72%) is low compared to the top 25% of dividend payers in the Indian market (2.72%).
Stability and Growth of Payments
Stable Dividend: TORNTPHARM's dividend payments have been volatile in the past 10 years.
Growing Dividend: TORNTPHARM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.1%), TORNTPHARM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TORNTPHARM's dividends in 3 years are forecast to be well covered by earnings (33% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average board tenure
CEO
Samir Mehta (56yo)
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 ($USD2.66M) is above average for companies of similar size in the Indian market ($USD1.11M).
Compensation vs Earnings: Samir's compensation has increased by more than 20% in the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & MD | no data | ₹200.04m | 0.00024% ₹955.5k | |
| Executive Director of Operations & Whole Time Director | 0.33yr | ₹25.87m | 0.14% ₹567.7m | |
| Director of R&D and Whole-Time Director | 20yrs | ₹86.21m | 0.00047% ₹1.9m | |
| Chairman Emeritus | 6yrs | ₹50.00m | 0.00024% ₹955.5k | |
| Independent Non Executive Director | 8.5yrs | ₹4.10m | no data | |
| Independent Non Executive Director | 9.75yrs | ₹4.35m | no data | |
| Independent Director | 1.92yrs | ₹3.70m | no data | |
| Independent Director | 1.33yrs | ₹4.15m | no data |
6.0yrs
Average Tenure
55yo
Average Age
Experienced Board: TORNTPHARM's board of directors are considered experienced (6 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Torrent Pharmaceuticals Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Torrent Pharmaceuticals Limited
- Ticker: TORNTPHARM
- Exchange: NSEI
- Founded: 1959
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: ₹398.137b
- 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
| 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 |
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. The company offers products in various therapeutic areas, including cardiovascular, central nervous system, gastrointestinal, women healthcare, diabetology, pain management, gynecology, oncology, anti-infective, vitamin minerals nutrients. It also provides contract manufacturing services. The company was formerly known as Trinity Laboratories and changed its name to Torrent Pharmaceuticals Limited in 1971. The company was founded in 1959 and is based in Ahmedabad, India. Torrent Pharmaceuticals Limited is a subsidiary of Torrent Investments Private Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/13 12:59 |
| End of Day Share Price | 2020/07/13 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
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.