Torrent Pharmaceuticals Limited Fundamental Analysis
Torrent Pharmaceuticals Limited Fundamental Analysis
Torrent Pharmaceuticals Limited (TORNTPHARM.BO) shows moderate financial fundamentals with a PE ratio of 70.63, profit margin of 15.65%, and ROE of 27.02%. The company generates $138.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TORNTPHARM.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakTORNTPHARM.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakTORNTPHARM.BO trades at a premium to fair value.
Growth Score
ModerateTORNTPHARM.BO shows steady but slowing expansion.
Financial Health Score
ModerateTORNTPHARM.BO shows balanced financial health with some risks.
Profitability Score
ExcellentTORNTPHARM.BO achieves industry-leading margins.
Key Financial Metrics
Is TORNTPHARM.BO Expensive or Cheap?
P/E Ratio
TORNTPHARM.BO trades at 70.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TORNTPHARM.BO's PEG of 5.35 indicates potential overvaluation.
Price to Book
The market values Torrent Pharmaceuticals Limited at 18.19 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 31.74 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 $15.65 as profit after all expenses.
Operating Margin
Core operations generate 24.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.02 in profit for every $100 of shareholder equity.
ROA
Torrent Pharmaceuticals Limited generates $4.88 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 $10.39B, signaling weaker underlying cash strength.
Free Cash Flow
Torrent Pharmaceuticals Limited produces free cash flow of $8.43B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $24.91 in free cash annually.
FCF Yield
TORNTPHARM.BO converts 0.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
70.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
18.19
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How TORNTPHARM.BO Stacks Against Its Sector Peers
| Metric | TORNTPHARM.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 70.63 | 33.92 | Worse (Expensive) |
| ROE | 27.02% | 393.00% | Weak |
| Net Margin | 15.65% | -41456.00% (disorted) | Strong |
| Debt/Equity | 1.79 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.13 | 4.57 | Neutral |
| ROA | 4.88% | -293.00% (disorted) | Weak |
TORNTPHARM.BO outperforms its industry in 1 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
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation