⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TORNTPHARM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | TORNTPHARM | Market Cap | 1,45,237 Cr. | Current Price | 4,292 ₹ | High / Low | 4,483 ₹ |
| Stock P/E | 65.0 | Book Value | 250 ₹ | Dividend Yield | 0.75 % | ROCE | 27.8 % |
| ROE | 26.2 % | Face Value | 5.00 ₹ | DMA 50 | 4,168 ₹ | DMA 200 | 3,781 ₹ |
| Chg in FII Hold | 0.21 % | Chg in DII Hold | -0.12 % | PAT Qtr | 584 Cr. | PAT Prev Qtr | 606 Cr. |
| RSI | 51.4 | MACD | 57.5 | Volume | 2,43,707 | Avg Vol 1Wk | 4,03,393 |
| Low price | 3,075 ₹ | High price | 4,483 ₹ | PEG Ratio | 2.67 | Debt to equity | 0.25 |
| 52w Index | 86.4 % | Qtr Profit Var | 20.4 % | EPS | 65.0 ₹ | Industry PE | 27.6 |
📊 Financials
- Revenue Growth: Stable, PAT at 584 Cr vs 606 Cr previous quarter
- Profit Margins: EPS at 65.0 ₹, showing strong profitability
- Debt Ratios: Debt-to-equity at 0.25, manageable leverage
- Cash Flows: Healthy, supported by consistent profits
- Return Metrics: ROCE 27.8% and ROE 26.2% indicate excellent efficiency
💹 Valuation
- P/E Ratio: 65.0, much higher than industry average (27.6), suggesting overvaluation
- P/B Ratio: ~17.2 (Current Price / Book Value), expensive
- PEG Ratio: 2.67, reflecting stretched valuation relative to growth
- Intrinsic Value: Overvalued compared to peers, but supported by strong fundamentals
🏢 Business Model & Health
- Business Model: Pharmaceutical manufacturing and distribution, diversified across therapeutic areas
- Competitive Advantage: Strong brand, global presence, and robust R&D pipeline
- Overall Health: Financially strong with consistent growth, though valuations are stretched
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 4,100–4,200 ₹ levels (close to DMA 50)
- Long-Term Holding: Suitable for growth investors; dividend yield (0.75%) adds moderate stability
✅ Positive
- Strong EPS of 65.0 ₹ reflects profitability
- High ROCE (27.8%) and ROE (26.2%) show efficiency
- Low debt-to-equity ratio ensures financial strength
⚠️ Limitation
- P/E ratio significantly higher than industry average
- P/B ratio expensive compared to peers
- Quarterly PAT slightly declined (584 Cr vs 606 Cr)
📉 Company Negative News
- DII holdings decreased (-0.12%), showing reduced domestic institutional support
- Valuation stretched compared to industry peers
📈 Company Positive News
- FII holdings increased (+0.21%), showing foreign investor confidence
- Technical indicators (RSI 51.4, MACD 57.5) suggest improving momentum
🏭 Industry
- Pharmaceutical industry P/E: 27.6, much lower than TORNTPHARM’s valuation
- Sector demand driven by healthcare expansion and global drug requirements
🔎 Conclusion
- TORNTPHARM is financially strong with consistent profitability and robust returns
- Valuation is expensive compared to industry peers
- Best suited for long-term investors seeking growth exposure; entry near 4,100–4,200 ₹ offers better risk-reward