Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Torrent Pharmaceuticals Ltd

About the Company - Torrent Pharmaceuticals Ltd

Torrent Pharmaceuticals Ltd. is a Public Limited Listed company incorporated on 15/07/1972 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24230GJ1972PLC002126 and registration number is 002126. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 6742.32 Cr. and Equity Capital is Rs. 84.62 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsTorrent House, Off Ashram Road, Ahmedabad Gujarat 380009investorservices@torrentpharma.com
http://www.torrentpharma.com
Management
NamePosition Held
Mr. Sudhir MehtaChairman Emeritus
Mr. Samir MehtaExecutive Chairman
Mr. Aman Samir MehtaWhole Time Director
Mr. Jinesh ShahDirector - Operations
Dr. Maurice ChagnaudIndependent Director
Mr. Manish Mahendra ChoksiIndependent Director
Mr. Shailesh HaribhaktiIndependent Director
Mr. Haigreve KhaitanIndependent Director
Ms. Ameera ShahIndependent Director
Ms. Nayantara BaliIndependent Director

Torrent Pharmaceuticals Ltd. Share Price Update

Share PriceValue
Today₹2,625.25
Previous Day₹2,608.85

Basic Stock Data of Torrent Pharmaceuticals Ltd

Market Cap 88,908 Cr.
Current Price 2,627
High / Low2,700/1,446
Stock P/E62.1
Book Value 198
Dividend Yield0.84 %
ROCE19.8 %
ROE20.0 %
Face Value 5.00

Data Source: screener.in

Competitors of Torrent Pharmaceuticals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Procter & Gamble Health Ltd 8,456 Cr. 5,0945,643/4,48837.3 4851.84 %45.5 %33.5 % 10.0
Venus Remedies Ltd 488 Cr. 365430/14716.8 3520.00 %7.75 %5.90 % 10.0
Marksans Pharma Ltd 7,137 Cr. 158179/64.322.5 41.40.32 %22.2 %18.6 % 1.00
TTK Healthcare Ltd 2,106 Cr. 1,4901,584/82832.4 6880.67 %10.1 %99.7 % 10.0
SMS Lifesciences India Ltd 178 Cr. 588707/46464.1 5530.26 %7.92 %6.12 % 10.0
Industry Average136.6 Cr223.434.62423.880.62%18.69%32.76%8.2

Torrent Pharmaceuticals Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,9951,9372,1342,1372,1082,1312,3472,2912,4912,4912,5912,6602,732
Expenses1,3881,3551,4571,4771,5701,5701,6351,6121,7671,7641,8001,8351,863
Operating Profit607582677660538561712679724727791825869
OPM %30%30%32%31%26%26%30%30%29%29%31%31%32%
Other Income839405148-4293016-109342655
Interest91736871625755691021071039180
Depreciation167165165168167162155163193196191201213
Profit before tax357383484472357-87532463419433531559631
Tax %17%15%32%33%30%-36%33%33%30%34%29%31%30%
Net Profit297324330316249-118354312292287378386443
EPS in Rs8.789.579.759.347.36-3.4910.469.228.638.4811.1711.4113.09

Torrent Pharmaceuticals Ltd Quarterly Chart

Torrent Pharmaceuticals Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,6913,2034,1724,6366,6875,8165,9507,6737,9398,0058,5089,62010,474
Expenses2,1892,5063,2163,6163,9544,4384,6015,6905,7695,5246,0776,7787,262
Operating Profit5026979551,0202,7331,3771,3491,9832,1702,4802,4312,8423,212
OPM %19%22%23%22%41%24%23%26%27%31%29%30%31%
Other Income-2213428632223299-30012157-28845124
Interest393459175184206308504451353255333381
Depreciation828387191238307409618654658662707801
Profit before tax3595828449402,3431,0889315621,1871,5261,2261,8472,154
Tax %20%25%21%20%26%14%27%22%14%18%37%33%
Net Profit2864356647511,7339346784361,0251,2527771,2451,494
EPS in Rs8.3912.7919.6222.1951.2227.5920.0412.8930.2836.9922.9736.7944.15
Dividend Payout %25%45%25%25%34%25%35%66%53%47%105%60%

Torrent Pharmaceuticals Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)52.10%52.64%13.10%130.76%-46.11%-27.41%-35.69%135.09%22.15%-37.94%60.23%
Change in YoY Net Profit Growth (%)0.00%0.55%-39.54%117.66%-176.86%18.70%-8.28%170.78%-112.95%-60.09%98.17%

Torrent Pharmaceuticals Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:10%
3 Years:7%
TTM:13%
Compounded Profit Growth
10 Years:10%
5 Years:14%
3 Years:7%
TTM:15%
Stock Price CAGR
10 Years:25%
5 Years:25%
3 Years:28%
1 Year:78%
Return on Equity
10 Years:24%
5 Years:19%
3 Years:20%
Last Year:20%

Torrent Pharmaceuticals Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital4242858585858585858585169169
Reserves1,1521,3801,8182,4063,4094,2664,5384,6404,7395,7535,8686,0296,538
Borrowings5796931,1322,7402,3522,5106,4626,0385,7844,8744,0705,3694,487
Other Liabilities1,2751,6381,9882,5893,0402,7403,1593,3513,4023,3632,8843,0433,550
Total Liabilities3,0483,7535,0227,8208,8869,60114,24314,11314,01014,07512,90614,61014,744
Fixed Assets7978208752,8332,8593,6887,8557,7487,5337,0656,4238,1218,369
CWIP1192855346781,042519647617712889630765263
Investments124601862987808044923532181226199277
Other Assets2,0082,5873,4274,0114,2064,5895,2495,3955,7635,9405,6285,5245,835
Total Assets3,0483,7535,0227,8208,8869,60114,24314,11314,01014,07512,90614,61014,744

Torrent Pharmaceuticals Ltd Reserves and Borrowings Chart

Torrent Pharmaceuticals Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4861535998102,7421,0098941,7981,3932,0051,8032,368
Cash from Investing Activity -137-247-418-2,113-869-798-4,677-246229-444-196-2,335
Cash from Financing Activity -19320861,212-1,435-1933,417-1,314-1,549-1,651-1,78177
Net Cash Flow156-73268-9043718-36623873-89-174110

Torrent Pharmaceuticals Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7178961257960776876697074
Inventory Days225364297275314318429318362456368298
Days Payable365421421472523356447345345351250224
Cash Conversion Cycle-6922-28-71-13021594293174188147
Working Capital Days0334254-12820-17-2828974
ROCE %27%33%35%27%48%19%13%13%15%17%19%20%

Torrent Pharmaceuticals Ltd Financial Efficiency Indicators Chart

Torrent Pharmaceuticals Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters71.25%71.25%71.25%71.25%71.25%71.25%71.25%71.25%71.25%71.25%71.25%71.25%
FIIs11.37%11.65%11.53%11.63%10.88%10.80%11.37%12.09%12.04%12.85%13.15%14.08%
DIIs8.35%8.42%8.72%8.94%9.74%10.01%9.40%8.77%8.89%8.22%7.91%7.11%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.10%0.10%0.10%0.10%0.10%0.10%
Public9.03%8.68%8.50%8.18%8.14%7.95%7.87%7.78%7.71%7.59%7.59%7.46%
No. of Shareholders72,61664,52564,30967,20563,22962,93367,86665,23763,83161,57269,61269,117

Torrent Pharmaceuticals Ltd Shareholding Pattern Chart

No. of Torrent Pharmaceuticals Ltd Shareholders

Torrent Pharmaceuticals Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Emerging Equity Fund - Regular Plan23092531.5584.5
UTI Flexi Cap Fund12335121.24312.21
SBI Large & Midcap Fund7400020.94187.3
Nippon India Pharma Fund6033642.22152.72
Kotak Small Cap Fund - Regular Plan4637480.81117.38
Axis Growth Opportunities Fund4003400.93101.33
Kotak Equity Arbitrage Fund - Regular Plan3905000.2798.84
Nippon India Value Fund3536261.2889.51
Franklin India Bluechip Fund - Dividend3500001.1988.59
Franklin India Bluechip Fund - Growth3500001.1988.59

Torrent Pharmaceuticals Ltd ROCE Trend

Torrent Pharmaceuticals Ltd EPS Trend

Torrent Pharmaceuticals Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)36.7945.9373.9860.5525.78
Diluted EPS (Rs.)36.7945.9373.9860.5525.78
Cash EPS (Rs.)57.6785.05112.8499.2162.28
Book Value[Excl.RevalReserv]/Share (Rs.)183.13351.75344.90284.99279.15
Book Value[Incl.RevalReserv]/Share (Rs.)183.13351.75344.90284.99279.15
Revenue From Operations / Share (Rs.)284.23502.72472.97469.12453.37
PBDIT / Share (Rs.)85.30155.27149.90135.41120.55
PBIT / Share (Rs.)64.43116.15111.0496.7484.05
PBT / Share (Rs.)54.5872.4490.1870.1133.19
Net Profit / Share (Rs.)36.7945.9273.9760.5525.78
NP After MI And SOA / Share (Rs.)36.7945.9273.9760.5525.78
PBDIT Margin (%)30.0130.8831.6928.8626.58
PBIT Margin (%)22.6623.1023.4720.6218.53
PBT Margin (%)19.2014.4019.0614.947.32
Net Profit Margin (%)12.949.1315.6312.905.68
NP After MI And SOA Margin (%)12.949.1315.6312.905.68
Return on Networth / Equity (%)20.0913.0521.4421.249.23
Return on Capital Employeed (%)22.7922.6320.4619.1315.88
Return On Assets (%)8.295.938.897.313.08
Long Term Debt / Equity (X)0.400.350.500.670.82
Total Debt / Equity (X)0.850.670.820.901.03
Asset Turnover Ratio (%)0.590.530.500.470.43
Current Ratio (X)0.971.201.130.910.97
Quick Ratio (X)0.560.640.580.510.60
Inventory Turnover Ratio (X)0.720.680.690.780.72
Dividend Payout Ratio (NP) (%)69.3087.0927.0359.4569.81
Dividend Payout Ratio (CP) (%)44.2147.0217.7236.2828.90
Earning Retention Ratio (%)30.7012.9172.9740.5530.19
Cash Earning Retention Ratio (%)55.7952.9882.2863.7271.10
Interest Coverage Ratio (X)8.6610.307.195.084.05
Interest Coverage Ratio (Post Tax) (X)4.735.954.553.272.57
Enterprise Value (Cr.)56758.9950939.2747229.2337065.0937070.02
EV / Net Operating Revenue (X)5.905.995.904.674.83
EV / EBITDA (X)19.6619.3818.6216.1718.17
MarketCap / Net Operating Revenue (X)5.415.565.374.204.31
Retention Ratios (%)30.6912.9072.9640.5430.18
Price / BV (X)8.397.957.376.926.99
Price / Net Operating Revenue (X)5.415.565.374.204.31
EarningsYield0.020.010.020.030.01

Torrent Pharmaceuticals Ltd Profitability Ratios (%)

Torrent Pharmaceuticals Ltd Liquidity Ratios

Torrent Pharmaceuticals Ltd Liquidity Ratios (%)

Torrent Pharmaceuticals Ltd Interest Coverage Ratios (X)

Torrent Pharmaceuticals Ltd Valuation Ratios

Fair Value / Intrinsic Value of Torrent Pharmaceuticals Ltd

Fair Value: ₹2479.82

The stock is overvalued by 5.60% compared to the current price ₹2627

*Investments are subject to market risks

Strength and Weakness of Torrent Pharmaceuticals Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 23.83%, which is a positive sign.
  2. The company has higher reserves (4,041.23 cr) compared to borrowings (3,622.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (6.00 cr) and profit (325.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 94.48 and average Dividend Yield of 21.68%.
  2. The stock has a high average Working Capital Days of 33.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 37.33, which may not be favorable.

Should I Buy Torrent Pharmaceuticals Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Torrent Pharmaceuticals Ltd:
    1. Net Profit Margin: 12.94%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.79% (Industry Average ROCE: 26.41%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 4.73
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.56
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 62.2 (Industry average Stock P/E: 17.38)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.85
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Torrent Pharmaceuticals Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE