TORNTPHARM - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

📊 Analysis Summary

TORNTPHARM (Torrent Pharmaceuticals) is currently trading at its 52-week high, with strong momentum and excellent fundamentals. However, the stock appears overbought in the short term, making it a high-risk swing trade unless a pullback occurs.

✅ Strengths

ROCE: 27.0% & ROE: 26.5%

Outstanding efficiency and profitability metrics.

EPS: ₹59.2

Strong earnings base.

Quarterly PAT Growth: ₹515 Cr. → ₹548 Cr. (+19.9%)

Solid earnings momentum.

MACD: +97.6

Strong bullish momentum.

Volume Surge

Current volume (17.5L) is more than double the weekly average — confirms strong interest.

Trading Well Above DMA 50 & 200 (₹3,369 & ₹3,219)

Indicates a strong uptrend.

52W Index: 98.1%

Near yearly high — confirms momentum.

DII Holding ↑ 0.29%

Domestic institutions are accumulating.

⚠️ Risks & Overvaluation

RSI: 79.4

Deeply overbought — high risk of short-term correction.

P/E: 63.1 vs Industry PE: 34.0

Significantly overvalued.

PEG Ratio: 2.98

Expensive relative to growth.

Debt to Equity: 0.42

Moderate leverage — not alarming, but worth monitoring.

FII Holding ↓ 0.22%

Slight foreign investor exit.

🎯 Optimal Entry Price

Entry Zone: ₹3,500–₹3,580

Wait for a pullback from overbought levels. Avoid entering near 52-week high unless momentum continues.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹3,850–₹3,900

Short-term resistance zone above current price. Consider booking profits here.

Stop Loss: ₹3,640

Below recent support and DMA 50.

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