NSEI:TORNTPHARM

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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.


Snowflake Analysis

High growth potential with adequate balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.3%

TORNTPHARM

3.5%

IN Pharmaceuticals

1.7%

IN Market


1 Year Return

69.4%

TORNTPHARM

14.8%

IN Pharmaceuticals

-24.0%

IN Market

Return vs Industry: TORNTPHARM exceeded the Indian Pharmaceuticals industry which returned 16.5% over the past year.

Return vs Market: TORNTPHARM exceeded the Indian Market which returned -23.7% over the past year.


Shareholder returns

TORNTPHARMIndustryMarket
7 Day3.3%3.5%1.7%
30 Day6.2%0.09%-0.7%
90 Day14.7%12.8%-21.4%
1 Year72.7%69.4%16.6%14.8%-22.5%-24.0%
3 Year115.9%107.6%7.9%4.8%-12.2%-16.9%
5 Year130.9%113.3%-6.7%-10.1%6.6%-3.9%

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

Valuation

Is Torrent Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

78.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TORNTPHARM (₹2581.55) is trading above our estimate of fair value (₹1235.34)

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 (78.1x) compared to the Pharmaceuticals industry average (16.5x).

PE vs Market: TORNTPHARM is poor value based on its PE Ratio (78.1x) compared to the Indian market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: TORNTPHARM is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: TORNTPHARM is overvalued based on its PB Ratio (8.6x) compared to the IN Pharmaceuticals industry average (1.4x).


Next Steps

Future Growth

How is Torrent Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TORNTPHARM's forecast earnings growth (24.6% per year) is above the savings rate (7.2%).

Earnings vs Market: TORNTPHARM's earnings (24.6% per year) are forecast to grow faster than the Indian market (16.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TORNTPHARM's revenue (10% per year) is forecast to grow faster than the Indian market (7.2% per year).

High Growth Revenue: TORNTPHARM's revenue (10% 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 (21.6%)


Next Steps

Past Performance

How has Torrent Pharmaceuticals performed over the past 5 years?

-17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TORNTPHARM has a large one-off loss of ₹3.2B impacting its December 31 2019 financial results.

Growing Profit Margin: TORNTPHARM's current net profit margins (7.1%) are lower than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: TORNTPHARM's earnings have declined by -17.4% per year over the past 5 years.

Accelerating Growth: TORNTPHARM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TORNTPHARM had negative earnings growth (-31.5%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (21.2%).


Return on Equity

High ROE: TORNTPHARM's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Torrent Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: TORNTPHARM's short term assets (₹50.4B) exceed its short term liabilities (₹46.1B).

Long Term Liabilities: TORNTPHARM's short term assets (₹50.4B) exceed its long term liabilities (₹43.0B).


Debt to Equity History and Analysis

Debt Level: TORNTPHARM's debt to equity ratio (118.6%) is considered high.

Reducing Debt: TORNTPHARM's debt to equity ratio has increased from 94.5% to 118.6% over the past 5 years.

Debt Coverage: TORNTPHARM's debt is well covered by operating cash flow (28.2%).

Interest Coverage: TORNTPHARM's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Torrent Pharmaceuticals's current dividend yield, its reliability and sustainability?

0.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TORNTPHARM's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.86%).

High Dividend: TORNTPHARM's dividend (0.81%) is low compared to the top 25% of dividend payers in the Indian market (3.7%).


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 reasonable payout ratio (63.5%), TORNTPHARM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TORNTPHARM's dividends in 3 years are forecast to be well covered by earnings (29.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average board tenure


CEO

Samir Mehta (55yo)

no data

Tenure

₹150,040,000

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 ($USD1.98M) is above average for companies of similar size in the Indian market ($USD1.15M).

Compensation vs Earnings: Samir's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Samir Mehta
Executive Chairman & MDno data₹150.04m0.00024% 1.1m
Chaitanya Dutt
Director of R&D and Whole-Time Director19.83yrs₹74.86m0.00047% 2.1m
Jinesh Shah
Executive Director of Operations & Whole Time Director0.17yrno datano data
Sudhir Mehta
Chairman Emeritus 5.83yrs₹50.00m0.00024% 1.1m
Haigreve Khaitan
Independent Non Executive Director8.33yrs₹3.10mno data
Shailesh Haribhakti
Independent Non Executive Director9.58yrs₹3.50mno data
Ameera Shah
Independent Director1.75yrs₹1.50m0.00071% 3.1m
Nayantara Bali
Independent Director1.17yrsno datano data

5.8yrs

Average Tenure

54yo

Average Age

Experienced Board: TORNTPHARM's board of directors are considered experienced (5.8 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: ₹439.960b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500420BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1999
TORNTPHARMNSEI (National Stock Exchange of India)YesEquity SharesININRNov 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, diabetology, anti-infective, vitamin minerals nutrients, pain management, nephrology, oncology, gynecology, pediatric, and women healthcare. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 13:13
End of Day Share Price2020/05/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.