Torrent Pharmaceuticals
Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India and internationally. The last earnings update was 28 days ago. More info.
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- Torrent Pharmaceuticals has significant price volatility in the past 3 months.
TORNTPHARM Share Price and Events
7 Day Returns
1 Year Returns
TORNTPHARM Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Torrent Pharmaceuticals (TORNTPHARM) | -2.4% | -9.1% | -19.8% | 0.7% | 12.7% | 115.5% |
| IN Pharmaceuticals | -1.3% | -3% | -11.3% | -15% | -17.3% | 14.3% |
| IN Market | -1.8% | 3.6% | -0% | -1.3% | 31.8% | 41.4% |
1 Year Return vs Industry and Market
- TORNTPHARM outperformed the Pharmaceuticals industry which returned -15% over the past year.
- TORNTPHARM outperformed the Market in India which returned -1.3% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Torrent Pharmaceuticals
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Torrent Pharmaceuticals.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 21 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 14.5% |
| Perpetual Growth Rate | 10-Year IN Government Bond Rate | 7.6% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year IN Govt Bond Rate | 7.6% |
| Equity Risk Premium | S&P Global | 8.6% |
| Pharmaceuticals Unlevered Beta | Simply Wall St/ S&P Global | 0.64 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.64 (1 + (1- 35%) (19.13%)) |
0.812 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.81 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.812 * 8.6%) |
14.53% |
Discounted Cash Flow Calculation for NSEI:TORNTPHARM using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Torrent Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (INR, Millions) | Source |
Present Value Discounted (@ 14.53%) |
|
|---|---|---|---|
| 2019 | 13,722.25 | Analyst x12 | 11,981.21 |
| 2020 | 12,999.79 | Analyst x14 | 9,910.31 |
| 2021 | 16,485.21 | Analyst x14 | 10,972.89 |
| 2022 | 21,300.00 | Analyst x1 | 12,378.88 |
| 2023 | 24,205.33 | Est @ 13.64% | 12,282.54 |
| 2024 | 27,064.71 | Est @ 11.81% | 11,991.01 |
| 2025 | 29,915.74 | Est @ 10.53% | 11,572.51 |
| 2026 | 32,799.28 | Est @ 9.64% | 11,078.16 |
| 2027 | 35,755.22 | Est @ 9.01% | 10,544.31 |
| 2028 | 38,820.72 | Est @ 8.57% | 9,995.80 |
| Present value of next 10 years cash flows | ₹112,707.62 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= ₹38,820.72 × (1 + 7.55%) ÷ (14.53% – 7.55%) |
₹598,041.36 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= ₹598,041.36 ÷ (1 + 14.53%)10 |
₹153,987.48 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= ₹112,707.62 + ₹153,987.48 |
₹266,695.10 |
| Equity Value per Share (INR) |
= Total value / Shares Outstanding
= ₹266,695.10 / 169.22 |
₹1576.01 |
| Calculation | Result | |
|---|---|---|
| Value per share (INR) | From above. | ₹1,576.48 |
| Current discount | Discount to share price of
₹1,498.05
= -1 x (₹1,498.05 - ₹1,576.48) / ₹1,576.48 |
5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Torrent Pharmaceuticals's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Torrent Pharmaceuticals's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Torrent Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Torrent Pharmaceuticals's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in INR | ₹25.78 |
| BSE:500420 Share Price ** | BSE (2019-06-17) in INR | ₹1497.6 |
| India Pharmaceuticals Industry PE Ratio | Median Figure of 115 Publicly-Listed Pharmaceuticals Companies | 18.1x |
| India Market PE Ratio | Median Figure of 2,826 Publicly-Listed Companies | 15.85x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Torrent Pharmaceuticals.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = BSE:500420 Share Price ÷ EPS (both in INR) = 1497.6 ÷ 25.78 |
58.09x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Torrent Pharmaceuticals is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
- Torrent Pharmaceuticals is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does
Torrent Pharmaceuticals's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 58.09x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts |
36.9%per year |
| India Pharmaceuticals Industry PEG Ratio | Median Figure of 31 Publicly-Listed Pharmaceuticals Companies | 1.37x |
| India Market PEG Ratio | Median Figure of 522 Publicly-Listed Companies | 1.34x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 58.09x ÷ 36.9% |
1.57x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Torrent Pharmaceuticals is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Torrent Pharmaceuticals's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in INR | ₹278.16 |
| BSE:500420 Share Price * | BSE (2019-06-17) in INR | ₹1497.6 |
| India Pharmaceuticals Industry PB Ratio | Median Figure of 134 Publicly-Listed Pharmaceuticals Companies | 1.66x |
| India Market PB Ratio | Median Figure of 3,653 Publicly-Listed Companies | 1x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = BSE:500420 Share Price ÷ Book Value per Share (both in INR) = 1497.6 ÷ 278.16 |
5.38x |
* Primary Listing of Torrent Pharmaceuticals.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Torrent Pharmaceuticals is overvalued based on assets compared to the IN Pharmaceuticals industry average.
Value checks
We assess Torrent Pharmaceuticals's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check) Torrent Pharmaceuticals has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Torrent Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
- Torrent Pharmaceuticals's earnings growth is expected to exceed the India market average.
- Torrent Pharmaceuticals's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NSEI:TORNTPHARM Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts | 36.9% |
| NSEI:TORNTPHARM Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts | 11% |
| India Pharmaceuticals Industry Earnings Growth Rate | Market Cap Weighted Average | 20.3% |
| India Pharmaceuticals Industry Revenue Growth Rate | Market Cap Weighted Average | 11.6% |
| India Market Earnings Growth Rate | Market Cap Weighted Average | 16.6% |
| India Market Revenue Growth Rate | Market Cap Weighted Average | 9.9% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-03-31 | 104,730 | 23,721 | 15,342 | 2 |
| 2021-03-31 | 93,925 | 19,874 | 12,017 | 18 |
| 2020-03-31 | 82,885 | 16,553 | 8,909 | 17 |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 74,620 | 4,360 | |
| 2018-12-31 | 74,831 | 8,161 | |
| 2018-09-30 | 69,691 | 6,281 | |
| 2018-06-30 | 65,121 | 6,531 | |
| 2018-03-31 | 60,021 | 8,942 | 6,781 |
| 2017-12-31 | 56,727 | 6,556 | |
| 2017-09-30 | 56,387 | 8,266 | |
| 2017-06-30 | 56,387 | 8,296 | |
| 2017-03-31 | 58,157 | 10,088 | 9,336 |
| 2016-12-31 | 59,154 | 10,014 | |
| 2016-09-30 | 60,144 | 10,624 | |
| 2016-06-30 | 62,744 | 13,644 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
All data from Torrent Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-03-31 | 90.69 | 91.56 | 89.81 | 2.00 |
| 2021-03-31 | 71.13 | 88.60 | 61.60 | 19.00 |
| 2020-03-31 | 52.82 | 57.90 | 48.30 | 18.00 |
| Date (Data in INR Millions) | EPS * |
|---|---|
| 2019-03-31 | 25.78 |
| 2018-12-31 | 48.29 |
| 2018-09-30 | 37.15 |
| 2018-06-30 | 38.65 |
| 2018-03-31 | 40.07 |
| 2017-12-31 | 38.68 |
| 2017-09-30 | 48.79 |
| 2017-06-30 | 48.97 |
| 2017-03-31 | 55.17 |
| 2016-12-31 | 59.18 |
| 2016-09-30 | 62.87 |
| 2016-06-30 | 80.66 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Torrent Pharmaceuticals is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Future performance checks
We assess Torrent Pharmaceuticals's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Torrent Pharmaceuticals has a total score of 5/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Torrent Pharmaceuticals performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Torrent Pharmaceuticals's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
- Torrent Pharmaceuticals's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Torrent Pharmaceuticals's 1-year earnings growth is negative, it can't be compared to the IN Pharmaceuticals industry average.
Earnings and Revenue History
All data from Torrent Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 74,620.00 | 4,360.00 | 14,040.00 | |
| 2018-12-31 | 74,830.70 | 8,161.10 | 13,742.50 | |
| 2018-09-30 | 69,690.70 | 6,281.10 | 12,782.50 | |
| 2018-06-30 | 65,120.70 | 6,531.10 | 12,182.50 | |
| 2018-03-31 | 60,020.70 | 6,781.10 | 11,352.50 | |
| 2017-12-31 | 56,726.90 | 6,555.50 | 10,674.10 | |
| 2017-09-30 | 56,386.90 | 8,265.50 | 10,284.10 | |
| 2017-06-30 | 56,386.90 | 8,295.50 | 10,044.10 | |
| 2017-03-31 | 58,156.90 | 9,335.50 | 9,934.10 | |
| 2016-12-31 | 59,153.90 | 10,013.80 | 10,232.60 | |
| 2016-09-30 | 60,143.90 | 10,623.80 | 9,912.60 | |
| 2016-06-30 | 62,743.90 | 13,643.80 | 9,392.60 | |
| 2016-03-31 | 66,668.50 | 17,332.40 | 8,423.50 | |
| 2015-12-31 | 63,314.50 | 16,299.40 | 18,652.60 | |
| 2015-09-30 | 59,604.50 | 13,139.40 | 18,582.60 | |
| 2015-06-30 | 54,864.50 | 9,439.40 | 18,722.60 | |
| 2015-03-31 | 46,534.50 | 7,509.40 | 8,771.90 | |
| 2014-12-31 | 47,247.20 | 8,648.80 | 16,510.40 | |
| 2014-09-30 | 45,717.20 | 8,558.80 | 16,310.40 | |
| 2014-06-30 | 43,267.20 | 7,708.80 | 15,890.40 | |
| 2014-03-31 | 41,847.20 | 6,638.80 | 15,770.40 | |
| 2013-12-31 | 38,291.40 | 5,307.60 | 13,901.20 | |
| 2013-09-30 | 36,111.40 | 4,857.60 | 13,631.20 | |
| 2013-06-30 | 33,781.40 | 4,797.60 | 13,361.20 | |
| 2013-03-31 | 32,111.40 | 4,327.60 | 13,154.80 | |
| 2012-12-31 | 30,159.69 | 3,197.76 | 11,359.66 | |
| 2012-09-30 | 29,129.79 | 2,906.26 | 11,159.66 | |
| 2012-06-30 | 28,206.39 | 2,833.66 | 10,902.56 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Torrent Pharmaceuticals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Torrent Pharmaceuticals used its assets less efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
- Torrent Pharmaceuticals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Torrent Pharmaceuticals's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Torrent Pharmaceuticals has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Torrent Pharmaceuticals's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Torrent Pharmaceuticals's finances.
The net worth of a company is the difference between its assets and liabilities.
- Torrent Pharmaceuticals's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Torrent Pharmaceuticals's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Torrent Pharmaceuticals Company Filings, last reported 2 months ago.
| Date (Data in INR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 47,240.00 | 48,470.00 | 12,320.00 |
| 2018-12-31 | 47,360.00 | 56,960.00 | 17,430.00 |
| 2018-09-30 | 47,360.00 | 56,960.00 | 17,430.00 |
| 2018-06-30 | 46,227.10 | 64,794.00 | 13,595.30 |
| 2018-03-31 | 46,227.10 | 64,794.00 | 13,595.30 |
| 2017-12-31 | 45,430.00 | 23,490.00 | 21,430.00 |
| 2017-09-30 | 45,430.00 | 23,490.00 | 21,430.00 |
| 2017-06-30 | 43,506.20 | 25,269.60 | 16,972.70 |
| 2017-03-31 | 43,506.20 | 25,269.60 | 16,972.70 |
| 2016-12-31 | 40,230.00 | 20,670.00 | 20,000.00 |
| 2016-09-30 | 40,230.00 | 20,670.00 | 20,000.00 |
| 2016-06-30 | 33,894.80 | 23,828.40 | 14,073.20 |
| 2016-03-31 | 34,945.60 | 23,692.40 | 14,266.20 |
| 2015-12-31 | 33,840.00 | 22,740.00 | 16,370.00 |
| 2015-09-30 | 33,840.00 | 22,740.00 | 16,370.00 |
| 2015-06-30 | 24,909.90 | 27,519.20 | 8,649.50 |
| 2015-03-31 | 24,909.90 | 27,519.20 | 8,649.50 |
| 2014-12-31 | 23,770.00 | 22,410.00 | 7,610.00 |
| 2014-09-30 | 23,770.00 | 22,410.00 | 7,610.00 |
| 2014-06-30 | 19,028.30 | 11,359.30 | 9,550.50 |
| 2014-03-31 | 19,028.30 | 11,359.30 | 9,550.50 |
| 2013-12-31 | 15,010.00 | 9,130.00 | 9,390.00 |
| 2013-09-30 | 15,010.00 | 9,130.00 | 9,390.00 |
| 2013-06-30 | 14,223.00 | 7,176.80 | 6,874.10 |
| 2013-03-31 | 14,223.00 | 7,176.80 | 6,874.10 |
| 2012-12-31 | 14,489.70 | 3,046.80 | 4,625.70 |
| 2012-09-30 | 14,489.70 | 3,046.80 | 4,625.70 |
| 2012-06-30 | 11,973.19 | 5,902.94 | 7,607.97 |
- Torrent Pharmaceuticals's level of debt (102.6%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (59.7% vs 102.6% today).
- Debt is not well covered by operating cash flow (18.4%, less than 20% of total debt).
- Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
Financial health checks
We assess Torrent Pharmaceuticals's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Torrent Pharmaceuticals has a total score of 1/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Torrent Pharmaceuticals's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
₹2,000 of
Torrent Pharmaceuticals
shares you are expected to receive
₹23
in your first year as a dividend.
Dividend Amount
- Torrent Pharmaceuticals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.53%).
- Torrent Pharmaceuticals's dividend is below the markets top 25% of dividend payers in India (2.04%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 21 Analyst Estimates (S&P Global) | See Below |
| India Pharmaceuticals Industry Average Dividend Yield | Market Cap Weighted Average of 74 Stocks | 0.8% |
| India Market Average Dividend Yield | Market Cap Weighted Average of 1449 Stocks | 1.4% |
| India Minimum Threshold Dividend Yield | 10th Percentile | 0.3% |
| India Bottom 25% Dividend Yield | 25th Percentile | 0.5% |
| India Top 25% Dividend Yield | 75th Percentile | 2% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in ₹) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-03-31 | 29.66 | 2.00 |
| 2021-03-31 | 20.25 | 17.00 |
| 2020-03-31 | 16.01 | 16.00 |
| Date (Data in ₹) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-20 | 17.000 | 1.105 |
| 2019-01-30 | 18.000 | 1.003 |
| 2018-05-30 | 14.000 | 0.857 |
| 2018-02-08 | 13.000 | 0.971 |
| 2017-07-03 | 14.000 | 1.081 |
| 2017-05-26 | 14.000 | 1.160 |
| 2017-02-03 | 25.000 | 1.841 |
| 2016-03-09 | 35.000 | 2.480 |
| 2016-02-04 | 26.250 | 2.012 |
| 2015-05-15 | 11.250 | 0.791 |
| 2015-01-28 | 10.000 | 0.863 |
| 2014-05-09 | 10.000 | 1.219 |
| 2014-03-18 | 8.500 | 1.509 |
| 2014-01-21 | 5.000 | 0.920 |
| 2013-06-27 | 6.500 | 1.461 |
| 2013-05-31 | 6.500 | 1.592 |
| 2013-01-29 | 4.250 | 1.224 |
| 2012-07-24 | 4.250 | 1.234 |
| 2012-01-24 | 3.000 | 0.987 |
| 2011-06-02 | 3.000 | 1.029 |
| 2010-05-06 | 3.000 | 1.067 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Torrent Pharmaceuticals has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
- Dividend payments have increased, but Torrent Pharmaceuticals only paid a dividend in the past 9 years.
Income/ dividend checks
We assess Torrent Pharmaceuticals's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Torrent Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Torrent Pharmaceuticals has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | ₹150,040,000 |
| AGE | 54 |
CEO Bio
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 associated with Torrent Pharmaceuticals since 1986 as Director. He served as the Managing Director of Torrent Pharmaceuticals Ltd, from April 1, 2001 to July 30, 2010. His rich experience spans all areas of operations such as finance, human resources, manufacturing, marketing, etc. Mr. Mehta has been associated with Torrent since its early days. He has been Executive Chairman of Torrent Pharmaceuticals Ltd., since July 30, 2014. He has been the Chairman of Torrent Power Limited since April 1, 2018. He was Vice Chairman of Torrent Power Limited until April 1, 2018. and served as its Executive Vice Chairman since August 1, 2010. He served as Executive Vice Chairman of Torrent Pharmaceuticals Ltd. since August 1, 2010 until July 30, 2014. He has ably tackled the external environment and has been responsible for setting the guiding policies and principles. His foresight has been significantly responsible for nurturing Torrent Pharmaceuticals from its childhood to a mature adult stage. His other directorships include Torrent Private Ltd., Torrent Power Ltd., Torrent Pipavav Generations Ltd., and Torrent Energy Ltd. He served as a Director on the Boards of erstwhile Torrent Power AEC Limited, Torrent Power SEC Limited and Torrent Power Generation Limited. He is a member of HUF. Mr. Mehta is a commerce graduate and holds an MBA degree from the B.K. School of Business Management, Ahmedabad.
CEO Compensation
- Samir's compensation has been consistent with company performance over the past year, both up more than 20%.
- Samir's remuneration is higher than average for companies of similar size in India.
Management Team
Samir Mehta
Executive Chairman & MD
₹150M
54
Mahesh Agrawal
VP of Legal
₹11M
54
Chaitanya Dutt
Director of R&D and Whole-Time Director
₹61M
68
4.4 yrs
Sudhir Menon
Chief Financial Officer
₹7M
46
0.8 yrs
Jinesh Shah
Executive Director of Operations
41
Dhruv Gulati
Chief Marketing Officer
₹17M
61
R. Chandrashekhar
Vice President of Procurement
₹7M
49
Jaydip Bhatt
Vice President of Human Resource
₹7M
65
H. Guttikar
Vice President of Projects
₹7M
55
Ashish Hajarnish
Vice President of Works
₹8M
50
Board of Directors Tenure
Average tenure and age of the Torrent Pharmaceuticals board of directors in years:
- The tenure for the Torrent Pharmaceuticals board of directors is about average.
Board of Directors
Sudhir Mehta
Chairman Emeritus
₹50M
64
4.9 yrs
Samir Mehta
Executive Chairman & MD
₹150M
54
4.9 yrs
Chaitanya Dutt
Director of R&D and Whole-Time Director
₹61M
68
18.9 yrs
Shailesh Haribhakti
Independent Non Executive Director
₹4M
62
8.7 yrs
Haigreve Khaitan
Independent Non Executive Director
₹3M
48
7.4 yrs
Ashok Modi
Director
₹55M
56
Ameera Shah
Independent Director
38
0.8 yrs
Nayantara Bali
Independent Director
52
0.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (₹) | Value (₹) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 15. Nov 18 | Buy | Ameera Shah | Individual | 13. Nov 18 | 13. Nov 18 | 1,200 | ₹1,661.45 | ₹1,993,738 | ||
Management checks
We assess Torrent Pharmaceuticals's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Torrent Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is Torrent Pharmaceuticals Limited's (NSE:TORNTPHARM) 13% Better Than Average?
Our data shows Torrent Pharmaceuticals has a return on equity of 13% for the last year. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleShareholders Should Check If Insiders Own Shares In Torrent Pharmaceuticals Limited (NSE:TORNTPHARM)
Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership. … View our latest analysis for Torrent Pharmaceuticals
Simply Wall St - – Full articleAre Torrent Pharmaceuticals Limited's (NSE:TORNTPHARM) Interest Costs Too High?
Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Torrent Pharmaceuticals Limited (NSE:TORNTPHARM), with a market capitalization of ₹240.37b, rarely draw their attention from the investing community. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.
Simply Wall St - – Full articleIs Torrent Pharmaceuticals Limited's (NSE:TORNTPHARM) PE Ratio A Signal To Sell For Investors?
and want to better understand how you can grow your money by investing in Torrent Pharmaceuticals Limited (NSE:TORNTPHARM). … Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) is currently trading at a trailing P/E of 36.1x, which is higher than the industry average of 24.3x. … While TORNTPHARM might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions
Simply Wall St - – Full articleBrief Commentary On Torrent Pharmaceuticals Limited's (NSE:TORNTPHARM) Fundamentals
I've been keeping an eye on Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe TORNTPHARM has a lot to offer.
Simply Wall St - – Full articleShould You Be Tempted To Sell Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) Because Of Its PE Ratio?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for TORNTPHARM Price per share = ₹1357.05 Earnings per share = ₹38.678 ∴ Price-Earnings Ratio = ₹1357.05 ÷ ₹38.678 = 35.1x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you accidentally compared lower growth firms with TORNTPHARM, then TORNTPHARM’s P/E would naturally be higher since investors would reward TORNTPHARM’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with TORNTPHARM, TORNTPHARM’s P/E would again be higher since investors would reward TORNTPHARM’s lower risk with a higher price as well.
Simply Wall St - – Full articleIs Torrent Pharmaceuticals Limited's (NSE:TORNTPHARM) Balance Sheet Strong Enough To Weather A Storm?
View our latest analysis for Torrent Pharmaceuticals How does TORNTPHARM’s operating cash flow stack up against its debt? … With this rise in debt, TORNTPHARM currently has ₹16.97B remaining in cash and short-term investments , ready to deploy into the business. … Moreover, TORNTPHARM has produced cash from operations of ₹10.13B over the same time period, resulting in an operating cash to total debt ratio of 40.08%, indicating that TORNTPHARM’s operating cash is sufficient to cover its debt.
Simply Wall St - – Full articleWhat Do Analysts Think About the future of Torrent Pharmaceuticals Limited's (NSE:TORNTPHARM)?
Margin Calculation for TORNTPHARM Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 6.56 Billion ÷ 56.73 Billion = 11.56% Torrent Pharmaceuticals's margin has expanded in the past five years, with 19.86% in average net income growth outstripping a 14.97% average growth in revenue, which suggests that the company has been able to convert a larger percentage of revenue into net income whilst grow their top line at the same time. … This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth. … Thus, it is essential to run your own analysis on Torrent Pharmaceuticals's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.
Simply Wall St - – Full articleCan Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) Continue To Outperform Its Industry?
View our latest analysis for Torrent Pharmaceuticals What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … For now, let’s just look at the cost of equity number for Torrent Pharmaceuticals, which is 13.40%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NSEI:TORNTPHARM Last Perf Apr 13th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.
Simply Wall St - – Full articleInvestors In Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) Are Paying Above The Intrinsic Value
5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF (₹, Millions) ₹8,029.00 ₹9,802.77 ₹12,721.69 ₹14,243.94 ₹15,948.34 Source Analyst x2 Analyst x13 Analyst x13 Extrapolated @ (11.97%) Extrapolated @ (11.97%) Present Value Discounted @ 13.4% ₹7,080.25 ₹7,622.94 ₹8,723.80 ₹8,613.47 ₹8,504.53 Present Value of 5-year Cash Flow (PVCF)= ₹40,545 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = ₹15,948 × (1 + 7%) ÷ (13.4% – 7%) = ₹266,636 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = ₹266,636 / ( 1 + 13.4%)5 = ₹142,185 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is ₹182,730. … NSEI:TORNTPHARM Intrinsic Value Mar 6th 18 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.
Simply Wall St - – Full articleCompany Info
Description
Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India and internationally. The company offers products in various therapeutic areas, including cardiovascular, central nervous system, gastrointestinal, diabetology, anti-infective, vitamin minerals nutrients, pain management, nephrology, oncology, pulmonology, gynecology, and pediatric. 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 Private Limited.
Details
| Name: | Torrent Pharmaceuticals Limited |
| TORNTPHARM | |
| Exchange: | NSEI |
| Founded: | 1959 |
| ₹253,426,747,392 | |
| 169,221,920 | |
| Website: | http://www.torrentpharma.com |
| Address: |
Torrent Pharmaceuticals Limited Torrent House, Off. Ashram Road, Ahmedabad, Gujarat, 380009, India |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| BSE | 500420 | Equity Shares | Mumbai Stock Exchange | IN | INR | 30. Nov 1999 | |
| NSEI | TORNTPHARM | Equity Shares | National Stock Exchange of India | IN | INR | 30. Nov 1999 |
Number of employees
Current staff
Industry
| Pharmaceuticals | |
| Pharmaceuticals & Biotech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/18 12:50 |
| End of day share price update: | 2019/06/17 00:00 |
| Last estimates confirmation: | 2019/06/13 |
| Last earnings filing: | 2019/05/21 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2019/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
