BIOCON vs TORNTPHARM
Side-by-side comparison of Biocon Ltd. and Torrent Pharmaceuticals Ltd.. Descriptive only — not investment advice.
Biocon Ltd.
Pharma
Quality Score: 46/100
Torrent Pharmaceuticals Ltd.
Pharma
Quality Score: 59/100
At a glance
| Metric | BIOCON | TORNTPHARM |
|---|---|---|
| Quality Score | 46/100 | 59/100 |
| P/E (trailing) | 147.5 | 68.0 |
| Forward P/E | 48.0 | 45.9 |
| ROE | — | +17.0% |
| Profit margin | +3.6% | +15.5% |
| Debt-to-equity | 50.02 | 85.44 |
| Dividend yield | +0.12% | +0.86% |
| 1Y price return | +26.8% | +38.2% |
| From 52w high | -1.7% | -7.7% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.32 | 1.68 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
BIOCON trades at ₹417.6, up 26.75% over 12 months and 11.67% over the past 3 months, with the stock above both its 50-DMA (₹371.1) and 200-DMA (₹374.1). The trailing PE of 147.5 is the highest among 6 pharma peers benchmarked, against a profit margin of 3.59% and a debt-to-equity ratio of 50.0 with a rising debt trend. Forward PE of 48x implies the market is pricing a material earnings recovery.
Torrent Pharmaceuticals (₹4,350) trades at a trailing PE of 68.0x and forward PE of 45.9x, well above its pharma peer group, on the back of a 38% 1-year price gain. Q4 FY26 revenue rose 42% YoY with growth across India, Brazil, and a semaglutide launch; however, 5-year earnings have declined 21.8% even as revenues grew 41.8%, reflecting a persistent earnings-quality gap. Debt-to-equity of 85.4 is rising and materially above pharma norms, representing the key structural concern in the current data.
Pros
- ✓5-year revenue growth of 9.2% demonstrates sustained top-line expansion in a competitive pharma landscape.
- ✓The stock has recovered to within 1.7% of its 52-week high, trading above both the 50-DMA and 200-DMA, reflecting 12-month price appreciation of 26.75%.
- ✓Biocon Biologics recently received Health Canada approval for an antifungal injection, adding a regulatory milestone to its biosimilars portfolio.
- ✓Forward PE of 48x versus trailing PE of 147.5 reflects a consensus expectation of meaningful near-term earnings improvement, with analyst coverage spanning 19 analysts on a 1–5 scale (mean rating 2.32, lower = more constructive).
- ✓ROE of 16.99% ranks 2nd of 6 sector peers and has been above 15% in 4 of the tracked years, indicating relatively consistent capital returns within this cohort.
- ✓Revenue has grown 41.8% over 5 years; Q4 FY26 posted 42% YoY revenue growth with double-digit expansion across all geographies including India, Brazil, and international markets.
- ✓FCF was positive in 4 of the tracked years with a consistency score of 77, suggesting the business generates recurring operating cash flows despite its heavy debt load.
- ✓Price is above both the 50-DMA (₹4,266) and 200-DMA (₹3,913), and the stock is only 7.69% below the 52-week high — the price structure reflects 12-month outperformance of 38.19% relative to the prior year.
Cons
- ✗Trailing PE of 147.5 is the highest in the 6-peer pharma group, with SUNPHARMA at 41x and CIPLA at 29.9x as comparators, while profit margin is only 3.59%.
- ✗Debt-to-equity of 50.0 with a rising debt trend introduces significant financial leverage in a sector and business where margins are thin and FCF has been positive in only 3 of 5 available years.
- ✗ROE has not crossed 15% in any year in the persistence window and the full ROE figure is unavailable, meaning the business has not demonstrated consistent equity-return generation during the observed period.
- ✗Quality score of 41 ranks 4th of 6 peers (below MAXHEALTH at 54 and SUNPHARMA at 50), placing BIOCON at the lower end of the peer quality composite while carrying the sector-highest valuation multiple.
- ✗Debt-to-equity of 85.4 is rising and stands far above pharma sector norms; at this leverage level, incremental interest burden and refinancing risk are material considerations.
- ✗5-year earnings growth of -21.8% while revenue grew 41.8% indicates cost structures, interest charges, or other line items have prevented revenue expansion from translating into profit growth.
- ✗Trailing PE of 68.0x is the highest among the 6 reported sector peers; Cipla (28.9x), Dr. Reddy's (25.6x), and Sun Pharma (37.5x) all trade at significantly lower multiples, concentrating valuation risk if earnings momentum softens.
- ✗Quality score of 39 ranks 3rd of 6 peers — Sun Pharma (59) and Apollo Hospitals (44) score higher — reflecting that the composite quality assessment is mid-pack despite the premium valuation.
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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.