TORNTPHARM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.6
| Stock Code | TORNTPHARM | Market Cap | 1,42,431 Cr. | Current Price | 4,211 ₹ | High / Low | 4,483 ₹ |
| Stock P/E | 63.8 | Book Value | 250 ₹ | Dividend Yield | 0.76 % | ROCE | 27.8 % |
| ROE | 26.2 % | Face Value | 5.00 ₹ | DMA 50 | 4,170 ₹ | DMA 200 | 3,786 ₹ |
| Chg in FII Hold | 0.21 % | Chg in DII Hold | -0.12 % | PAT Qtr | 584 Cr. | PAT Prev Qtr | 606 Cr. |
| RSI | 45.0 | MACD | 43.2 | Volume | 2,08,242 | Avg Vol 1Wk | 3,79,968 |
| Low price | 3,101 ₹ | High price | 4,483 ₹ | PEG Ratio | 2.62 | Debt to equity | 0.25 |
| 52w Index | 80.3 % | Qtr Profit Var | 20.4 % | EPS | 65.0 ₹ | Industry PE | 27.2 |
📊 TORNTPHARM shows moderate-to-strong potential for swing trading. The fundamentals are solid with EPS (65.0 ₹), ROE (26.2%), and ROCE (27.8%), supported by low debt-to-equity (0.25). Technical indicators are favorable: RSI at 45.0 suggests neutral momentum, while MACD (43.2) indicates bullish crossover. The current price (4,211 ₹) is above both the 50 DMA (4,170 ₹) and 200 DMA (3,786 ₹), showing strength. However, valuation is stretched with a high P/E (63.8) compared to industry PE (27.2), and quarterly PAT declined slightly from 606 Cr. to 584 Cr.
✅ Optimal Entry Price: Around 4,150–4,200 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider exiting near 4,350–4,400 ₹ (short-term resistance) unless strong breakout occurs.
🌟 Positive
- Strong EPS of 65.0 ₹ indicates profitability.
- High ROE (26.2%) and ROCE (27.8%) reflect efficient capital use.
- Low debt-to-equity ratio (0.25) shows financial stability.
- Technical indicators (MACD, DMA positioning) suggest bullish momentum.
⚠️ Limitation
- High P/E (63.8) makes the stock expensive compared to peers.
- Dividend yield is modest at 0.76%, not attractive for income investors.
- Quarterly PAT declined slightly, raising concerns about earnings consistency.
📰 Company Negative News
- Quarterly PAT dropped from 606 Cr. to 584 Cr.
- DII holdings decreased by -0.12%, showing reduced domestic institutional support.
📈 Company Positive News
- FII holdings increased by 0.21%, reflecting foreign investor confidence.
- Quarterly profit variation improved by 20.4% YoY.
- Strong 52-week performance (+80.3%).
🏭 Industry
- Industry PE is 27.2, much lower than TORNTPHARM’s 63.8, suggesting overvaluation.
- Pharmaceutical sector remains resilient, supported by demand for generics and specialty drugs.
🔎 Conclusion
TORNTPHARM is a moderately strong candidate for swing trading. Fundamentals are healthy, and technical indicators show bullish momentum. Traders may enter near 4,150–4,200 ₹ with a short-term target of 4,350–4,400 ₹. Risk management is advised due to high valuation and slight earnings decline, but strong sector outlook and efficiency metrics provide confidence for potential upside.