BIOCON vs TORNTPHARM
Side-by-side comparison of Biocon Ltd. and Torrent Pharmaceuticals Ltd.. Descriptive only — not investment advice.
Biocon Ltd.
Pharma
Quality Score: 50/100
Torrent Pharmaceuticals Ltd.
Pharma
Quality Score: 71/100
At a glance
| Metric | BIOCON | TORNTPHARM |
|---|---|---|
| Quality Score | 50/100 | 71/100 |
| P/E (trailing) | 134.8 | 65.7 |
| Forward P/E | 40.6 | 68.0 |
| ROE | — | — |
| Profit margin | +3.6% | +17.8% |
| Debt-to-equity | 50.02 | 33.40 |
| Dividend yield | +0.13% | +0.80% |
| 1Y price return | +11.6% | +35.1% |
| From 52w high | -10.5% | -1.7% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.21 | 1.70 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Biocon (BIOCON) trades at ₹380.40, above its 50-DMA (₹370.37) and 200-DMA (₹374.04), with an RSI of 62.5 and an 11.6% price gain over 12 months. At a trailing PE of 134.8 — the highest in its 6-stock pharma peer group — the stock carries a profit margin of 3.59%, a debt-to-equity of 50.0 (rising trend), and a quality score of 44, ranking last among benchmarked peers on both valuation and quality composite.
Torrent Pharmaceuticals trades at ₹4,406, up 35.06% over the past year and above both its 50-DMA (₹4,249) and 200-DMA (₹3,853). The stock carries a trailing PE of 65.74 — the highest among most of its tracked pharma peers — supported by 5-year earnings growth of 26.1% and a consistency score of 85. Debt-to-equity of 33.4 is elevated for the sector, though the debt trend is reported as falling.
Pros
- ✓Forward PE of 40.6x implies the market is pricing in a substantial earnings recovery relative to the trailing 134.8x multiple, and 5-year reported earnings growth of 409.5% reflects growth from a low base.
- ✓Price is above both the 50-DMA (₹370.37) and 200-DMA (₹374.04), with the 52-week drawdown limited to 10.5% from the high and a 12-month return of +11.6%.
- ✓FCF was positive in 3 of the 5 available historical years, and 5-year revenue growth of 9.2% indicates a growing top line in an R&D-intensive sector.
- ✓Mean analyst rating of 2.21 across 19 analysts (1–5 scale, lower = more constructive) reflects a relatively constructive average stance from sell-side coverage.
- ✓Five-year earnings CAGR of 26.1% and revenue CAGR of 17.6% demonstrate sustained top- and bottom-line expansion over the measured period.
- ✓FCF was positive in 4 of the tracked years and debt trend is falling, pointing to improving cash conversion supporting debt reduction.
- ✓Consistency score of 85 places TORNTPHARM 2nd of 6 ranked peers by quality score, ahead of Cipla (30), Dr. Reddys (32), and Sun Pharma (50).
- ✓Price is within 1.71% of its 52-week high, with both the 50-DMA and 200-DMA trending below current price — the 200-DMA gap is ₹553 (approximately 14.4%).
Cons
- ✗Debt-to-equity of 50.0 on a rising trend represents the most acute balance-sheet risk; this level of leverage relative to a 3.59% profit margin leaves limited buffer if revenue or operating cash flows soften.
- ✗BIOCON ranks 6th of 6 peers on quality score (44) and carries the highest trailing PE (134.8x) in the peer group, indicating the current valuation is not supported by a quality-score premium over peers.
- ✗ROE has never exceeded 15% in any year of the persistence window, and FCF was negative in 2 of 5 observed years, indicating inconsistency in capital efficiency and cash generation.
- ✗Active succession planning for the chairperson role, with a publicly stated five-year transition timeline, introduces key-person and governance transition uncertainty for a founder-led company.
- ✗Trailing PE of 65.74 and forward PE of 68.04 rank among the highest in the peer group; most sector peers trade at materially lower multiples (Cipla 23.93, Dr. Reddys 18.96), compressing the margin of safety at current valuation.
- ✗Debt-to-equity of 33.4 is high by pharma-sector standards; while the trend is falling, the absolute level introduces sensitivity to interest rate changes and refinancing conditions.
- ✗ROE was above 15% in only 3 of the tracked years, and trailing ROE data is unavailable — the quality of capital returns relative to peers cannot be fully assessed.
- ✗News coverage consists of only 4 articles; the pending JB Chemicals amalgamation introduces execution risk and integration uncertainty that may not yet be reflected in consensus estimates.
Want the full analysis for either stock?
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Comparison reflects current public data; consult a registered adviser before any investment decision.