Torrent Pharmaceuticals Ltd (TORNTPHARM) AI Stock Analysis

• Market Cap: ₹1.34T
• Dividend Yield: 0.84%
• Average Volume (3M): 7.49K
• Price to Earnings (P/E): 62.7
• Beta (1Y): 0.62
• Revenue Growth: 9.11%
• EPS Growth: 18.76%
• Country: IN
• Employees: 15,718
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 17.70
• Shares Outstanding: 338,431,850
• 10 Day Avg. Volume: 2,743
• 30 Day Avg. Volume: 7,494
• PEG Ratio: 3.66
• Price to Book (P/B): 14.19
• Price to Sales (P/S): 9.36
• P/FCF Ratio: 54.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹3,805.00 ▲(6.32% Upside)

Torrent Pharmaceuticals demonstrates strong financial performance with significant revenue and cash flow growth. However, technical indicators suggest a lack of strong momentum, and the stock appears overvalued with a high P/E ratio. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategy, supporting long-term business expansion and sustainability.

Cash Flow Management

Strong cash flow growth reflects efficient capital management, providing the company with the flexibility to invest in growth opportunities and weather economic fluctuations.

Operational Efficiency

Improved operational efficiency as indicated by the higher EBIT margin enhances profitability and competitiveness, ensuring sustainable long-term growth.

Negative Factors

Net Profit Margin

A relatively lower net profit margin suggests potential inefficiencies in cost management, which could impact profitability if not addressed.

Asset Utilization

Suboptimal asset utilization may limit the company's ability to maximize returns on investments, affecting long-term financial performance.

Leverage

While leverage has improved, maintaining a balanced approach to debt is crucial to ensure financial stability and reduce risk exposure.

Torrent Pharmaceuticals Ltd Business Overview & Revenue Model

Company Description

Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India, the United States, Germany, Brazil, and internationally. It offers products in various therapeutic areas, including cardiovascular, central nervous system, gastrointestinal, women healthcare, diabetology, pain management, gynecology, oncology, and anti-infective, as well as provides vitamins, minerals, and nutrients. The company also provides contract manufacturing services. It has licensing collaborations of Baricitinib, Molnupiravir, and Paxlovid for its Covid portfolio. Torrent Pharmaceuticals Limited 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 Investments Private Limited.

How the Company Makes Money

Torrent Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products, which are marketed under both generic and branded labels. The company has a diversified revenue model that includes key revenue streams such as prescription drugs, over-the-counter products, and a growing portfolio of specialty pharmaceuticals. Additionally, Torrent benefits from its strong export business, supplying products to various countries, especially in regulated markets like the United States and Europe. Significant partnerships and collaborations with healthcare providers and other pharmaceutical companies enhance its distribution capabilities and broaden its market reach, further contributing to its earnings. The company also invests in research and development to innovate and expand its product offerings, which plays a crucial role in maintaining its competitive edge and sustaining revenue growth.

Torrent Pharmaceuticals Ltd Financial Statement Overview

Summary

Torrent Pharmaceuticals shows strong financial performance with robust revenue growth and improved profit margins. The company has effectively managed cash flow and reduced leverage, though there is room for improvement in net profit margin and asset utilization.

Income Statement

Torrent Pharmaceuticals has demonstrated strong revenue growth with a 8.6% increase from 2024 to 2025. The gross profit margin is robust at approximately 49.84% for 2025. However, the net profit margin of 16.59% indicates room for improvement in controlling expenses. The EBIT margin improved significantly to 51.73%, suggesting enhanced operational efficiency.

Balance Sheet

The company maintains a stable equity ratio of 50.60%, showing a healthy balance between equity and assets. The debt-to-equity ratio improved to 0.42, reflecting a solid reduction in leverage. However, the return on equity at 25.17% suggests strong returns for shareholders, although there's potential to optimize asset utilization further.

Cash Flow

Torrent Pharmaceuticals has achieved a remarkable free cash flow growth of 42.48%, indicating effective cash management. The operating cash flow to net income ratio of 1.35 reflects strong cash generation relative to earnings. The free cash flow to net income ratio at 1.03 also underscores efficient capital expenditure control.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	118.35B	115.16B	107.28B	96.20B	85.08B	80.05B
Gross Profit	89.79B	87.40B	80.42B	68.85B	60.66B	58.58B
EBITDA	38.11B	36.76B	33.25B	28.03B	23.82B	24.29B
Net Income	20.02B	19.11B	16.56B	12.45B	7.77B	12.52B
Balance Sheet
Total Assets	0.00	149.90B	150.61B	150.12B	131.00B	140.75B
Cash, Cash Equivalents and Short-Term Investments	6.88B	6.91B	10.04B	7.23B	5.83B	7.38B
Total Debt	0.00	32.02B	40.22B	53.68B	40.70B	48.74B
Total Liabilities	-75.91B	73.99B	82.04B	88.14B	71.47B	82.37B
Stockholders Equity	75.91B	75.91B	68.56B	61.98B	59.53B	58.37B
Cash Flow
Free Cash Flow	0.00	19.74B	28.33B	17.94B	16.00B	16.76B
Operating Cash Flow	0.00	25.85B	32.66B	23.68B	18.03B	20.11B
Investing Cash Flow	0.00	-5.40B	-1.68B	-24.15B	-1.97B	-4.49B
Financing Cash Flow	0.00	-22.98B	-27.80B	770.00M	-17.81B	-16.56B

Torrent Pharmaceuticals Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3578.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TORNTPHARM, the sentiment is Positive. The current price of 3578.85 is below the 20-day moving average (MA) of 3850.49, below the 50-day MA of 3778.84, and above the 200-day MA of 3501.39, indicating a bullish trend. The MACD of 62.63 indicates Negative momentum. The RSI at 61.65 is Neutral, neither overbought nor oversold. The STOCH value of 77.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TORNTPHARM.

Torrent Pharmaceuticals Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIVISLAB	74 Outperform	₹1.76T	70.69	―	0.46%	16.43%	35.35%
DRREDDY	74 Outperform	₹1.01T	17.21	―	0.63%	14.10%	9.72%
LUPIN	72 Outperform	₹996.48B	23.03	―	0.57%	15.49%	64.37%
ZYDUSLIFE	72 Outperform	₹900.53B	18.30	―	1.19%	14.01%	14.62%
CIPLA	68 Neutral	₹1.18T	21.76	―	0.87%	6.93%	21.55%
TORNTPHARM	66 Neutral	₹1.34T	62.67	―	0.84%	9.11%	18.76%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Torrent Pharmaceuticals Ltd Corporate Events

Torrent Pharmaceuticals Opens Special Window for Physical Share Transfers

Torrent Pharmaceuticals Ltd has announced a special window for the re-lodgement of transfer requests for physical shares, which will be open from July 7, 2025, to January 6, 2026. This initiative is aimed at facilitating shareholders who missed the previous deadline to submit necessary documents for share transfers, potentially impacting shareholder engagement and compliance with regulatory requirements.

Torrent Pharmaceuticals Faces GST Penalty, Plans to Appeal

Torrent Pharmaceuticals Ltd has disclosed that the Joint Commissioner of the Central GST, Ahmedabad South Commissionerate, has imposed a penalty of ₹41.33 crore under Section 74 of the Central Goods and Service Tax Act, 2017, due to an alleged erroneous refund on the export of goods. The company plans to appeal the order and does not anticipate any significant financial impact from this penalty, expecting a favorable outcome.

Torrent Pharma Secures CCI Approval for J.B. Chemicals Acquisition

Torrent Pharmaceuticals Ltd has received approval from the Competition Commission of India for its acquisition of a controlling stake in J. B. Chemicals & Pharmaceuticals from KKR. This approval, subject to certain voluntary modifications, marks a significant step in Torrent’s strategic expansion, potentially enhancing its market position and offering broader opportunities for growth.