Torrent Pharmaceuticals Ltd (TORNTPHARM) AI Stock Analysis

• Market Cap: ₹1.19T
• Dividend Yield: 0.91%
• Average Volume (3M): 10.08K
• Price to Earnings (P/E): 59.4
• Beta (1Y): 0.55
• Revenue Growth: 7.63%
• EPS Growth: 15.39%
• Country: IN
• Employees: 15,718
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 16.50
• Shares Outstanding: 338,445,430
• 10 Day Avg. Volume: 9,401
• 30 Day Avg. Volume: 10,083
• 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: ₹3,997.00
• Price Target Upside: 13.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ₹3,997.00 ▲(13.38% Upside)

Torrent Pharmaceuticals has a strong financial foundation with robust revenue and cash flow growth, which is the most significant factor in its overall score. The technical analysis indicates stable market conditions, though the high P/E ratio suggests overvaluation, which tempers the overall score.

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 Ltd generates revenue primarily through the sale of its pharmaceutical products, both branded and generic, in domestic and international markets. The company's revenue streams include sales from its diverse portfolio of therapeutic products, contract manufacturing services, and licensing agreements. Torrent Pharmaceuticals has a robust distribution network that enables it to reach a wide customer base, including hospitals, clinics, and pharmacies. Additionally, strategic partnerships and collaborations with other pharmaceutical companies enhance its market presence and product offerings. The company's focus on research and development also contributes to its earnings by enabling the introduction of innovative products and expansion into new therapeutic areas.

Torrent Pharmaceuticals Ltd Financial Statement Overview

Summary

Torrent Pharmaceuticals shows strong financial performance with significant revenue and cash flow growth. The company has improved its profit margins and reduced leverage, although 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: Neutral
• Last Price: 3525.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 3525.25 is below the 20-day moving average (MA) of 3580.29, below the 50-day MA of 3606.04, and above the 200-day MA of 3323.07, indicating a neutral trend. The MACD of -10.46 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 25.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:TORNTPHARM.

Torrent Pharmaceuticals Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	74 Outperform	₹1.04T	18.32	―	0.64%	15.86%	2.02%
TORNTPHARM	72 Outperform	₹1.19T	59.40	―	0.91%	7.63%	15.39%
ZYDUSLIFE	72 Outperform	₹1.00T	21.76	―	1.11%	14.52%	9.46%
LUPIN	68 Neutral	₹885.22B	24.32	―	0.62%	12.40%	63.16%
DIVISLAB	67 Neutral	₹1.55T	67.54	―	0.51%	17.92%	37.75%
CIPLA	62 Neutral	₹1.22T	22.70	―	0.86%	6.40%	25.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Torrent Pharmaceuticals Ltd Corporate Events

Torrent Pharmaceuticals Releases Q1 2025 Financial Results Conference Call Recording

Torrent Pharmaceuticals Ltd has announced the availability of an audio recording of its conference call with analysts and investors, discussing the financial results for the quarter ending June 30, 2025. This move reflects the company’s commitment to transparency and engagement with stakeholders, providing insights into its financial performance and strategic direction.

Torrent Pharmaceuticals to Acquire Stake in J.B. Chemicals

Torrent Pharmaceuticals Limited has announced the execution of a share purchase agreement to acquire a 2.41% equity stake in J.B. Chemicals & Pharmaceuticals Limited from certain employees at a price of INR 1,600 per share. This acquisition is part of a broader strategy to gain a controlling stake in J.B. Chemicals, subject to necessary approvals, and reflects Torrent’s strategic expansion efforts in the pharmaceutical sector.

Torrent Pharmaceuticals Schedules Call on JB Chemicals Acquisition

Torrent Pharmaceuticals Ltd has announced a teleconference scheduled for June 30, 2025, to discuss its acquisition of JB Chemicals & Pharmaceuticals Limited. This move is expected to enhance Torrent’s market position and expand its product portfolio, potentially impacting stakeholders positively by strengthening its competitive edge in the pharmaceutical industry.