Torrent Pharmaceuticals Limited
Torrent Pharmaceuticals Limited Fundamental Analysis
Torrent Pharmaceuticals Limited (TORNTPHARM.BO) shows moderate financial fundamentals with a PE ratio of 62.77, profit margin of 17.91%, and ROE of 29.19%. The company generates $126.9B in annual revenue with moderate year-over-year growth of 7.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TORNTPHARM.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTORNTPHARM.BO demonstrates superior asset utilization.
Valuation Score
WeakTORNTPHARM.BO trades at a premium to fair value.
Growth Score
ExcellentTORNTPHARM.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTORNTPHARM.BO maintains a strong and stable balance sheet.
Profitability Score
ExcellentTORNTPHARM.BO achieves industry-leading margins.
Key Financial Metrics
Is TORNTPHARM.BO Expensive or Cheap?
P/E Ratio
TORNTPHARM.BO trades at 62.77 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TORNTPHARM.BO's PEG of 10.23 indicates potential overvaluation.
Price to Book
The market values Torrent Pharmaceuticals Limited at 16.88 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.25 times EBITDA. This signals the market has high growth expectations.
How Well Does TORNTPHARM.BO Make Money?
Net Profit Margin
For every $100 in sales, Torrent Pharmaceuticals Limited keeps $17.91 as profit after all expenses.
Operating Margin
Core operations generate 31.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.19 in profit for every $100 of shareholder equity.
ROA
Torrent Pharmaceuticals Limited generates $14.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Torrent Pharmaceuticals Limited generates limited operating cash flow of $10.38B, signaling weaker underlying cash strength.
Free Cash Flow
Torrent Pharmaceuticals Limited produces free cash flow of $8.42B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $24.88 in free cash annually.
FCF Yield
TORNTPHARM.BO converts 0.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
62.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
16.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How TORNTPHARM.BO Stacks Against Its Sector Peers
| Metric | TORNTPHARM.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 62.77 | 27.85 | Worse (Expensive) |
| ROE | 29.19% | 779.00% | Weak |
| Net Margin | 17.91% | -21544.00% (disorted) | Strong |
| Debt/Equity | 0.33 | 261.05 | Strong (Low Leverage) |
| Current Ratio | 1.39 | 4.55 | Neutral |
| ROA | 14.64% | -9957.00% (disorted) | Strong |
TORNTPHARM.BO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Torrent Pharmaceuticals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.07%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
86.51%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
85.75%
Industry Style: Defensive, Growth, Innovation
High Growth