TORNTPHARM - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.1
| Stock Code | TORNTPHARM | Market Cap | 1,43,681 Cr. | Current Price | 4,252 ₹ | High / Low | 4,483 ₹ |
| Stock P/E | 64.3 | Book Value | 250 ₹ | Dividend Yield | 0.75 % | ROCE | 27.8 % |
| ROE | 26.2 % | Face Value | 5.00 ₹ | DMA 50 | 4,166 ₹ | DMA 200 | 3,875 ₹ |
| Chg in FII Hold | 0.05 % | Chg in DII Hold | -0.09 % | PAT Qtr | 584 Cr. | PAT Prev Qtr | 606 Cr. |
| RSI | 55.7 | MACD | 2.61 | Volume | 2,98,852 | Avg Vol 1Wk | 2,89,456 |
| Low price | 3,101 ₹ | High price | 4,483 ₹ | PEG Ratio | 2.64 | Debt to equity | 0.25 |
| 52w Index | 83.3 % | Qtr Profit Var | 20.4 % | EPS | 65.0 ₹ | Industry PE | 30.2 |
Analysis: Torrent Pharma shows strong fundamentals with excellent ROE/ROCE and relatively low debt-to-equity ratio. The stock trades at a premium (P/E 64.3 vs industry 30.2), but PEG ratio of 2.64 is more reasonable compared to peers. Technical indicators (RSI 55.7, MACD positive) suggest mild bullish momentum. Volumes are slightly above average, supporting a potential swing trade setup.
Optimal Entry Price: Around 4,150–4,180 ₹ (near 50 DMA support).
Exit Strategy if Holding: Consider exiting near 4,450–4,480 ₹ resistance zone unless momentum strengthens further.
✅ Positive
- High ROE (26.2%) and ROCE (27.8%).
- Low debt-to-equity ratio (0.25), indicating financial stability.
- Quarterly profit variation of 20.4% shows consistent growth.
⚠️ Limitation
- High P/E ratio (64.3) compared to industry average (30.2).
- Dividend yield at 0.75% is modest.
- Slight decline in DII holdings (-0.09%).
📉 Company Negative News
- Sequential decline in PAT (606 Cr. to 584 Cr.).
- Valuation concerns due to premium multiples.
📈 Company Positive News
- Strong EPS at 65 ₹ supports earnings quality.
- Stable FII interest with a slight increase (+0.05%).
- Healthy balance sheet with low leverage.
🏭 Industry
- Pharmaceutical sector with steady demand and defensive nature.
- Industry PE at 30.2 highlights Torrent Pharma’s premium valuation.
- Sector benefits from long-term healthcare demand in India.
📝 Conclusion
Torrent Pharma is a fundamentally strong candidate for swing trading with stable financials and mild bullish momentum. Entry near 4,150–4,180 ₹ offers a favorable risk-reward setup, with an exit target around 4,450–4,480 ₹. Premium valuation warrants caution, but strong fundamentals support short-term trading opportunities.