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Torrent Pharmaceuticals Ltd

NSE: TORNTPHARM BSE: 500420

4078

(0.02%)

Sat, 14 Feb 2026, 04:55 pm

Torrent Pharmaceuticals Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.6x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Torrent Pharmaceuticals's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Torrent Pharmaceuticals's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for Torrent Pharmaceuticals is expected to increase by more than 50% in 2 years time.
  • Torrent Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Torrent Pharmaceuticals's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Torrent Pharmaceuticals is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
  • An improvement in Torrent Pharmaceuticals's performance (ROE) is expected over the next 3 years.
  • Torrent Pharmaceuticals's revenue growth is expected to exceed the India market average.
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Cons

  • Torrent Pharmaceuticals's earnings are expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).
  • Torrent Pharmaceuticals's earnings growth is positive but not above the India market average.
  • Torrent Pharmaceuticals's earnings are expected to increase but not above the low risk growth rate next year.
  • Torrent Pharmaceuticals's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Torrent Pharmaceuticals's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Torrent Pharmaceuticals's revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Torrent Pharmaceuticals is profitable, therefore cash runway is not a concern.
  • Torrent Pharmaceuticals is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (22.6%, greater than 20% of total debt).
  • Torrent Pharmaceuticals's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).
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Cons

  • Torrent Pharmaceuticals's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
  • The level of debt compared to net worth has increased over the past 5 years (110.5% vs 127.5% today).
  • Torrent Pharmaceuticals's level of debt (127.5%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Torrent Pharmaceuticals board of directors is about average.
  • Samir's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Samir's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Torrent Pharmaceuticals has significant price volatility in the past 3 months.

    past

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    Pros

    • Torrent Pharmaceuticals's 1-year earnings growth exceeds its 5-year average (134.6% vs -16.6%)
    • Torrent Pharmaceuticals used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
    • Torrent Pharmaceuticals has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Torrent Pharmaceuticals's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (134.6% vs 22.7%).
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    Cons

    • Torrent Pharmaceuticals's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
    • Whilst Torrent Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.

    value

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    Pros

    • TORNTPHARM outperformed the Pharmaceuticals industry which returned 26.7% over the past year.
    • TORNTPHARM outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • Torrent Pharmaceuticals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Torrent Pharmaceuticals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Torrent Pharmaceuticals is overvalued based on assets compared to the IN Pharmaceuticals industry average.
    • Torrent Pharmaceuticals is poor value based on expected growth next year.
    • 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.
    • NSEI:TORNTPHARM is up 1.5% underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
    • NSEI:TORNTPHARM is up 1.5% underperforming the market in India which returned 8% over the past month.

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