Torrent Pharmaceuticals Limited

NSEI:TORNTPHARM Stock Report

Market Cap: ₹1.1t

Torrent Pharmaceuticals Valuation

Is TORNTPHARM 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 TORNTPHARM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TORNTPHARM (₹3167.1) is trading above our estimate of fair value (₹1710.74)

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

Key Valuation Metric

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

Key metric: As TORNTPHARM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TORNTPHARM. This is calculated by dividing TORNTPHARM's market cap by their current earnings.
What is TORNTPHARM's PE Ratio?
PE Ratio59.5x
Earnings₹18.02b
Market Cap₹1.07t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TORNTPHARM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26x
500124 Dr. Reddy's Laboratories
19x-1.0%₹1.0t
ZYDUSLIFE Zydus Lifesciences
22.3x0.6%₹955.0b
500257 Lupin
36x16.4%₹944.3b
CIPLA Cipla
26.8x7.3%₹1.2t
TORNTPHARM Torrent Pharmaceuticals
59.5x22.7%₹1.1t

Price-To-Earnings vs Peers: TORNTPHARM is expensive based on its Price-To-Earnings Ratio (59.5x) compared to the peer average (26x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INDSWFTLAB Ind-Swift Laboratories
1.6xn/aUS$70.43m
524652 Ind-Swift
2xn/aUS$13.12m
No more companies available in this PE range
TORNTPHARM 59.5xIndustry Avg. 31.7xNo. of Companies18PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TORNTPHARM is expensive based on its Price-To-Earnings Ratio (59.5x) compared to the Indian Pharmaceuticals industry average (31.7x).

Price to Earnings Ratio vs Fair Ratio

What is TORNTPHARM'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.

TORNTPHARM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio59.5x
Fair PE Ratio51.4x

Price-To-Earnings vs Fair Ratio: TORNTPHARM is expensive based on its Price-To-Earnings Ratio (59.5x) compared to the estimated Fair Price-To-Earnings Ratio (51.4x).

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 TORNTPHARM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹3,167.10
₹3,596.55
+13.6%
8.5%₹4,232.00₹2,930.00n/a29
Nov ’25₹3,205.30
₹3,586.67
+11.9%
8.6%₹4,232.00₹2,930.00n/a30
Oct ’25₹3,369.90
₹3,294.87
-2.2%
7.2%₹3,940.00₹2,775.00n/a31
Sep ’25₹3,485.15
₹3,286.16
-5.7%
7.4%₹3,940.00₹2,775.00n/a31
Aug ’25₹3,205.00
₹3,257.97
+1.7%
6.8%₹3,606.00₹2,775.00n/a31
Jul ’25₹2,781.20
₹2,875.57
+3.4%
7.7%₹3,337.00₹2,200.00n/a30
Jun ’25₹2,696.05
₹2,850.42
+5.7%
8.6%₹3,244.00₹2,189.00n/a31
May ’25₹2,642.55
₹2,736.83
+3.6%
9.5%₹3,063.00₹2,175.00n/a30
Apr ’25₹2,675.35
₹2,722.21
+1.8%
9.4%₹3,063.00₹2,175.00n/a29
Mar ’25₹2,668.65
₹2,700.41
+1.2%
9.3%₹2,975.00₹2,175.00n/a27
Feb ’25₹2,512.50
₹2,265.96
-9.8%
11.7%₹2,855.00₹1,805.00n/a28
Jan ’25₹2,296.30
₹2,153.48
-6.2%
7.7%₹2,480.00₹1,805.00n/a29
Dec ’24₹2,151.25
₹2,134.53
-0.8%
7.2%₹2,410.00₹1,805.00n/a30
Nov ’24₹1,920.05
₹2,129.14
+10.9%
7.1%₹2,410.00₹1,805.00₹3,205.3029
Oct ’24₹1,929.10
₹2,125.93
+10.2%
8.6%₹2,410.00₹1,750.00₹3,369.9028
Sep ’24₹1,785.80
₹2,107.41
+18.0%
9.0%₹2,410.00₹1,750.00₹3,485.1529
Aug ’24₹1,983.50
₹1,885.10
-5.0%
8.2%₹2,180.00₹1,530.00₹3,205.0030
Jul ’24₹1,904.95
₹1,859.59
-2.4%
8.1%₹2,165.00₹1,530.00₹2,781.2029
Jun ’24₹1,774.80
₹1,839.41
+3.6%
8.1%₹2,030.00₹1,530.00₹2,696.0529
May ’24₹1,652.30
₹1,750.69
+6.0%
6.9%₹1,925.00₹1,520.00₹2,642.5529
Apr ’24₹1,537.15
₹1,744.31
+13.5%
6.6%₹1,915.00₹1,520.00₹2,675.3529
Mar ’24₹1,475.35
₹1,742.55
+18.1%
7.0%₹1,915.00₹1,509.00₹2,668.6531
Feb ’24₹1,535.80
₹1,742.55
+13.5%
7.0%₹1,915.00₹1,509.00₹2,512.5031
Jan ’24₹1,550.60
₹1,724.19
+11.2%
8.7%₹1,915.00₹1,385.00₹2,296.3032
Dec ’23₹1,641.70
₹1,726.58
+5.2%
8.6%₹1,915.00₹1,385.00₹2,151.2531
Nov ’23₹1,686.15
₹1,720.80
+2.1%
8.6%₹1,915.00₹1,385.00₹1,920.0530

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

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