Torrent Pharmaceuticals Ltd.
Pharma · NSE
52-week range
₹3,075 – ₹4,483
From 52w high
-2.3%
RSI (14)
64.6
vs SMA 50 / 200
↑ 50 · ↑ 200
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.
- ✓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%).
- ✗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.
- ·Shareholders approved the amalgamation of Torrent Pharmaceuticals with JB Chemicals, a significant corporate event with potential implications for scale, debt, and integration timelines (reported April 28, 2026).
- ·Algorae Pharmaceuticals signed a license and supply agreement with Torrent Pharma, expanding the companys licensing revenue and product pipeline (reported May 5, 2026).
- ·Generic semaglutide market entry was cited as a near-term catalyst ahead of Q4 results (reported May 9, 2026); semaglutide is a high-profile molecule with significant global demand, and competitive dynamics in the generic segment remain fluid.
- ?Does the JB Chemicals amalgamation improve operating leverage and cash flows enough to justify the combined entitys elevated D/E, or does it add integration costs that weigh on near-term margins?
- ?Is the 26.1% five-year earnings CAGR driven by structural competitive advantages — such as branded generics, geography mix, or R&D pipeline depth — or by a favorable cycle that may normalise?
- ?At a forward PE of 68x, what earnings growth rate over the next 3–5 years is already priced in relative to sector peers trading at 19–40x?
- ?How material is the generic semaglutide opportunity for Torrent relative to total revenue, and what pricing pressure could emerge as more generic entrants receive approvals?
PE
65.7
Forward PE
68.0
ROE
—
Profit margin
+17.8%
D/E
33.40
Dividend yield
+0.8%
Quality score
52/100
ROE 5y above 15%
3/5 yrs
FCF 5y positive
4/5 yrs
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.Analysis generated 11 May 2026.