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Torrent Pharmaceuticals

NSEI:TORNTPHARM
Snowflake Description

High growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TORNTPHARM
NSEI
₹262B
Market Cap
  1. Home
  2. IN
  3. Pharmaceuticals & Biotech
Company description

Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India and internationally. The last earnings update was 5 days ago. More info.


Add to Portfolio Compare Print
  • Torrent Pharmaceuticals has significant price volatility in the past 3 months.
TORNTPHARM Share Price and Events
7 Day Returns
3.2%
NSEI:TORNTPHARM
1.9%
IN Pharmaceuticals
1%
IN Market
1 Year Returns
7.7%
NSEI:TORNTPHARM
-15.1%
IN Pharmaceuticals
1%
IN Market
TORNTPHARM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Torrent Pharmaceuticals (TORNTPHARM) 3.2% 2.3% -20% 7.7% 14.5% 115.7%
IN Pharmaceuticals 1.9% -5.5% -12.7% -15.1% -21.5% 5.7%
IN Market 1% -2.1% -0.7% 1% 30.4% 35.1%
1 Year Return vs Industry and Market
  • TORNTPHARM outperformed the Pharmaceuticals industry which returned -15.1% over the past year.
  • TORNTPHARM outperformed the Market in India which returned 1% over the past year.
Price Volatility
TORNTPHARM
Industry
5yr Volatility vs Market

Value

 Is Torrent Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Torrent Pharmaceuticals.

NSEI:TORNTPHARM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.9%
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.

Calculation of Discount Rate/ Cost of Equity for NSEI:TORNTPHARM
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 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.679 (1 + (1- 35%) (23.13%))
0.854
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.854 * 8.6%)
14.89%

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.

NSEI:TORNTPHARM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.89%)
2019 13,722.25 Analyst x12 11,943.69
2020 12,988.69 Analyst x16 9,839.92
2021 16,386.31 Analyst x16 10,804.91
2022 18,573.33 Analyst x3 10,659.65
2023 20,621.79 Est @ 11.03% 10,301.31
2024 22,680.93 Est @ 9.99% 9,861.44
2025 24,779.99 Est @ 9.25% 9,377.64
2026 26,946.57 Est @ 8.74% 8,875.84
2027 29,206.12 Est @ 8.39% 8,373.23
2028 31,581.96 Est @ 8.13% 7,880.82
Present value of next 10 years cash flows ₹97,918.45
NSEI:TORNTPHARM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹31,581.96 × (1 + 7.55%) ÷ (14.89% – 7.55%)
₹462,681.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹462,681.94 ÷ (1 + 14.89%)10
₹115,455.59
NSEI:TORNTPHARM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹97,918.45 + ₹115,455.59
₹213,374.04
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹213,374.04 / 169.22
₹1260.91
NSEI:TORNTPHARM Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹1,261.04
Current discount Discount to share price of ₹1,545.90
= -1 x (₹1,545.90 - ₹1,261.04) / ₹1,261.04
-22.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Torrent Pharmaceuticals is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NSEI:TORNTPHARM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹25.78
BSE:500420 Share Price ** BSE (2019-06-26) in INR ₹1545.75
India Pharmaceuticals Industry PE Ratio Median Figure of 115 Publicly-Listed Pharmaceuticals Companies 17.72x
India Market PE Ratio Median Figure of 2,825 Publicly-Listed Companies 15.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Torrent Pharmaceuticals.

NSEI:TORNTPHARM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500420 Share Price ÷ EPS (both in INR)

= 1545.75 ÷ 25.78

59.96x

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?
Raw Data
NSEI:TORNTPHARM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 59.96x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
36.5%per year
India Pharmaceuticals Industry PEG Ratio Median Figure of 31 Publicly-Listed Pharmaceuticals Companies 1.44x
India Market PEG Ratio Median Figure of 523 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

NSEI:TORNTPHARM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 59.96x ÷ 36.5%

1.64x

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?
Raw Data
NSEI:TORNTPHARM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹279.18
BSE:500420 Share Price * BSE (2019-06-26) in INR ₹1545.75
India Pharmaceuticals Industry PB Ratio Median Figure of 134 Publicly-Listed Pharmaceuticals Companies 1.6x
India Market PB Ratio Median Figure of 3,653 Publicly-Listed Companies 0.96x
NSEI:TORNTPHARM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500420 Share Price ÷ Book Value per Share (both in INR)

= 1545.75 ÷ 279.18

5.54x

* 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.
X
Value checks
We assess Torrent Pharmaceuticals's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. 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

 How is Torrent Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

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!
Annual Growth Rate
36.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Torrent Pharmaceuticals expected to grow at an attractive rate?
  • 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
Raw Data
NSEI:TORNTPHARM Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:TORNTPHARM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 36.5%
NSEI:TORNTPHARM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts 10%
India Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 20.1%
India Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 11.4%
India Market Earnings Growth Rate Market Cap Weighted Average 16.7%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*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
Raw Data
NSEI:TORNTPHARM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:TORNTPHARM Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 104,590 22,286 15,362 3
2021-03-31 93,912 19,826 12,087 19
2020-03-31 82,972 16,537 8,963 18
NSEI:TORNTPHARM Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 76,728 17,981 4,363
2018-12-31 74,831 8,161
2018-09-30 69,691 6,281
2018-06-30 65,121 6,531
2018-03-31 59,498 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.

Super high growth metrics
High Growth Checks
  • Torrent Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
  • Torrent Pharmaceuticals's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:TORNTPHARM 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 23 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.

NSEI:TORNTPHARM Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 90.73 97.00 84.53 4.00
2021-03-31 71.52 88.60 61.60 21.00
2020-03-31 53.10 61.00 48.30 20.00
NSEI:TORNTPHARM Past Financials Data
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%).
X
Future performance checks
We assess Torrent Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Torrent Pharmaceuticals's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Torrent Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Torrent Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TORNTPHARM Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 76,728.00 4,362.80 14,037.90
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 59,498.30 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).
X
Past performance checks
We assess Torrent Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Torrent Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x 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.
Raw Data

All data from Torrent Pharmaceuticals Company Filings, last reported 2 months ago.

NSEI:TORNTPHARM Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 47,243.50 60,522.40 11,673.90
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 13,595.00
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 (128.1%) 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 128.1% today).
  • Debt is well covered by operating cash flow (29.7%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Torrent Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Torrent Pharmaceuticals has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.1%
Current annual income from Torrent Pharmaceuticals dividends. Estimated to be 1.32% next year.
If you bought ₹2,000 of Torrent Pharmaceuticals shares you are expected to receive ₹22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Torrent Pharmaceuticals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.55%).
  • Torrent Pharmaceuticals's dividend is below the markets top 25% of dividend payers in India (2.08%).
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.
Raw Data
NSEI:TORNTPHARM Annualized Past and Future Dividends
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 23 Analyst Estimates (S&P Global) See Below
India Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 74 Stocks 0.9%
India Market Average Dividend Yield Market Cap Weighted Average of 1447 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 2.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:TORNTPHARM Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 32.76 4.00
2021-03-31 21.26 19.00
2020-03-31 16.89 19.00
NSEI:TORNTPHARM Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-20 17.000 1.109
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
2009-05-15 2.000 1.362
2009-03-31 2.000 2.720

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Torrent Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Torrent Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. Torrent Pharmaceuticals has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Torrent Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Samir Mehta
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

TITLE
Executive Chairman & MD
COMPENSATION
₹150M
AGE
54

Sudhir Menon

TITLE
Chief Financial Officer
COMPENSATION
₹12M
AGE
46
TENURE
0.8 yrs

Mahesh Agrawal

TITLE
VP of Legal
COMPENSATION
₹10M
AGE
54

Chaitanya Dutt

TITLE
Director of R&D and Whole-Time Director
COMPENSATION
₹75M
AGE
68
TENURE
4.4 yrs

Jinesh Shah

TITLE
Executive Director of Operations
AGE
41

Dhruv Gulati

TITLE
Chief Marketing Officer
COMPENSATION
₹17M
AGE
61

R. Chandrashekhar

TITLE
Vice President of Procurement
COMPENSATION
₹7M
AGE
49

Jaydip Bhatt

TITLE
Vice President of Human Resource
COMPENSATION
₹7M
AGE
65

H. Guttikar

TITLE
Vice President of Projects
COMPENSATION
₹7M
AGE
55

Ashish Hajarnish

TITLE
Vice President of Works
COMPENSATION
₹8M
AGE
50
Board of Directors Tenure

Average tenure and age of the Torrent Pharmaceuticals board of directors in years:

4.9
Average Tenure
54
Average Age
  • The tenure for the Torrent Pharmaceuticals board of directors is about average.
Board of Directors

Samir Mehta

TITLE
Executive Chairman & MD
COMPENSATION
₹150M
AGE
54
TENURE
4.9 yrs

Sudhir Mehta

TITLE
Chairman Emeritus
COMPENSATION
₹50M
AGE
64
TENURE
4.9 yrs

Chaitanya Dutt

TITLE
Director of R&D and Whole-Time Director
COMPENSATION
₹75M
AGE
68
TENURE
18.9 yrs

Shailesh Haribhakti

TITLE
Independent Non Executive Director
COMPENSATION
₹4M
AGE
62
TENURE
8.7 yrs

Haigreve Khaitan

TITLE
Independent Non Executive Director
COMPENSATION
₹3M
AGE
48
TENURE
7.4 yrs

Ameera Shah

TITLE
Independent Director
COMPENSATION
₹2M
AGE
38
TENURE
0.8 yrs

Nayantara Bali

TITLE
Independent Director
AGE
52
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
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
X
Management checks
We assess Torrent Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Shareholders 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 -

Are 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 -

Is 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 -

Brief 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 -

Should 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 -

Is 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 -

What 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 -

Can 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 -

Investors 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 -

Company 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
₹261,642,471,608
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
Staff numbers
14,550
Torrent Pharmaceuticals employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 12:53
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/25
Last earnings filing: 2019/06/21
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.