Torrent Pharmaceuticals Ltd.
NSE: TORNTPHARMTorrent Pharmaceuticals Ltd.: A 30-second snapshot
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.
P/E
68.0
Forward P/E
45.9
ROE
+17.0%
Debt / Equity
85.44
Profit Margin
+15.5%
Div. Yield
+0.9%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
59/100
News
7 headlines · 4 positive · 0 negative
TORNTPHARM: Q4 revenue surged 42% YoY, driven by India, Brazil, and semaglutide launch, with robust margins - TradingView
TradingView
TORNTPHARM: Q4 FY26 revenue up 42% YoY, FY26 net profit at ₹2,138 crores, strong growth across key markets - TradingView
TradingView
TORNTPHARM: Q4 FY26 revenue surged 42% year-over-year, with all regions posting double-digit growth - TradingView
TradingView
Torrent Pharmaceuticals Q3 Results - Mint
Mint
Buy Torrent Pharmaceuticals; target of Rs 5000: Prabhudas Lilladher - TradingView
TradingView
Recent context
- ·Q4 FY26 results reported revenue up 42% YoY with FY26 full-year net profit at ₹2,138 crore; the semaglutide launch was cited as a specific growth driver alongside broad geographic expansion.
- ·All 7 recent news items carried positive or neutral sentiment (4 positive, 3 neutral, 0 negative), with coverage concentrated around the Q4 results and geographic growth momentum.
- ·Prabhudas Lilladher issued a note citing a price target of ₹5,000 — this is a third-party broker view attributed to a named firm and does not represent VivaTrades analysis.
Strengths
- +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.
Weaknesses
- −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.
Open questions
- ?Does the semaglutide launch represent a structural, multi-year revenue contributor, or is it a one-period catalyst whose contribution to the 42% Q4 revenue growth may not repeat?
- ?Can earnings growth recover to positive territory given the 5-year trend of -21.8%, and what operating levers — margin expansion, interest reduction, or volume scale — would need to activate for that to occur?
- ?Given the D/E of 85.4 on a rising trend, how has the company managed its debt maturity profile and interest coverage, and is FCF generation sufficient to service obligations without equity dilution?
- ?How does the forward PE compression from 68.0x trailing to 45.9x forward translate into specific earnings-growth assumptions, and does the Q4 FY26 result trajectory support those embedded expectations?
Peer comparison: Pharma
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| TORNTPHARM | Torrent Pharmaceuticals Ltd.You're viewing | 68.0 | +17.0% | 39 |
| Industry avg | across 5 peers | 43.2 | +14.8% | 36 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 37.5 | +14.7% | 59 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 60.1 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 63.5 | +14.3% | 37 |
| CIPLA | Cipla Ltd. | 28.9 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 25.6 | +11.8% | 17 |
Technical state
Current price
₹4,350.40
SMA 50
₹4,266.42
SMA 200
₹3,913.37
RSI (14)
48.8 (neutral)
From 52w high
-7.7%
1Y return
+38.2%
3M return
-1.6%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 85.4 is extremely elevated for a pharmaceutical company, where the sector norm is well below 1.0. The debt trend is reported as rising, compounding the concern — this level introduces material refinancing, interest-burden, and balance-sheet fragility risk.
- high5-year earnings growth of -21.8% contrasts sharply with 5-year revenue growth of 41.8%. Revenues roughly doubled while net earnings declined over the same period, pointing to significant margin erosion or rising cost structures that have absorbed the top-line expansion.
- mediumTrailing PE of 68.0x ranks last (6th of 6) among sector peers by valuation premium. Cipla trades at 28.9x, Dr. Reddy's at 25.6x, and Sun Pharma at 37.5x — TORNTPHARM commands a multiple 83-165% above these peers, leaving limited room for earnings disappointment.
- low3-month price change of -1.55% against a 1-year gain of 38.19% indicates recent momentum has stalled. Price is 7.69% below the 52-week high; the nearest support cluster sits at ₹4,175–4,264, approximately 2–4% below current price.
Cross-section contradictions
- 5-year revenue growth of 41.8% reflects a business that has expanded substantially, yet 5-year earnings growth of -21.8% shows profits have contracted over the same window — the income statement divergence implies cost structures, interest charges, or tax rates have absorbed the revenue gains.
- Price is 38.19% higher over 12 months and trades above both the 50-DMA (₹4,266) and 200-DMA (₹3,913), signalling sustained price appreciation, yet the 3-month return is -1.55% and the trailing PE of 68x sits at the most expensive level among all reported peers — recent price consolidation alongside peak-of-peer valuation is an unresolved tension in the data.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days