TORNTPHARM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | TORNTPHARM | Market Cap | 1,36,454 Cr. | Current Price | 4,032 ₹ | High / Low | 4,125 ₹ |
| Stock P/E | 63.9 | Book Value | 250 ₹ | Dividend Yield | 0.80 % | ROCE | 27.8 % |
| ROE | 26.2 % | Face Value | 5.00 ₹ | DMA 50 | 3,888 ₹ | DMA 200 | 3,617 ₹ |
| Chg in FII Hold | 0.21 % | Chg in DII Hold | -0.12 % | PAT Qtr | 606 Cr. | PAT Prev Qtr | 551 Cr. |
| RSI | 57.1 | MACD | 36.6 | Volume | 3,25,019 | Avg Vol 1Wk | 3,35,933 |
| Low price | 2,886 ₹ | High price | 4,125 ₹ | PEG Ratio | 2.63 | Debt to equity | 0.25 |
| 52w Index | 92.5 % | Qtr Profit Var | 31.8 % | EPS | 62.3 ₹ | Industry PE | 29.1 |
📊 TORNTPHARM shows strong fundamentals with high ROCE, ROE, and consistent profit growth. The stock is trading near its 52-week high with bullish technical indicators, though valuations are stretched compared to industry averages. It is a good candidate for swing trading with momentum-driven potential.
✅ Optimal Entry Price: Around 3,950–4,000 ₹ (near support above 50 DMA)
🚪 Exit Strategy: If already holding, consider exiting near 4,100–4,120 ₹ (resistance zone close to 52-week high of 4,125 ₹).
Positive
- ROCE (27.8%) and ROE (26.2%) reflect strong efficiency.
- EPS of 62.3 ₹ indicates solid earnings power.
- Quarterly PAT improved (606 Cr vs 551 Cr), showing growth momentum.
- Stock trading above both 50 DMA (3,888 ₹) and 200 DMA (3,617 ₹), showing technical strength.
- MACD positive (36.6) signals bullish momentum.
Limitation
- High P/E (63.9) compared to industry PE (29.1), suggesting overvaluation.
- PEG ratio of 2.63 indicates weak growth relative to valuation.
- Dividend yield of 0.80% is modest, offering limited investor return.
- RSI at 57.1 is approaching overbought territory.
- DII holdings declined (-0.12%), showing reduced domestic institutional confidence.
Company Negative News
- Minor decline in DII holdings reflects cautious sentiment.
- Stock trading close to 52-week high may limit immediate upside.
Company Positive News
- Quarterly profit variation of 31.8% highlights strong growth.
- FII holdings increased (+0.21%), showing foreign investor confidence.
- Strong fundamentals with high efficiency ratios support valuation.
Industry
- Industry PE at 29.1 is much lower, highlighting TORNTPHARM’s premium valuation.
- Pharmaceutical sector remains resilient with steady demand and global opportunities.
Conclusion
⚖️ TORNTPHARM offers strong swing trading potential with entry near 3,950–4,000 ₹ and exit near 4,100–4,120 ₹. While fundamentals are robust and technicals show bullish momentum, premium valuation and modest dividend yield warrant caution. Best suited for short-term momentum traders looking to capitalize on near-term highs.