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TORNTPHARM - Swing Trade Analysis with AI Signals

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Rating: 4.2

Last Updated Time : 19 Jun 26, 11:29 am

Swing Trade Rating: 4.2

Stock Code TORNTPHARM Market Cap 1,50,267 Cr. Current Price 4,446 ₹ High / Low 4,714 ₹
Stock P/E 67.9 Book Value 250 ₹ Dividend Yield 0.85 % ROCE 19.8 %
ROE 27.6 % Face Value 5.00 ₹ DMA 50 4,364 ₹ DMA 200 4,027 ₹
Chg in FII Hold 0.05 % Chg in DII Hold -0.09 % PAT Qtr 504 Cr. PAT Prev Qtr 584 Cr.
RSI 51.7 MACD 35.1 Volume 3,22,273 Avg Vol 1Wk 3,89,389
Low price 3,140 ₹ High price 4,714 ₹ PEG Ratio 2.32 Debt to equity 1.69
52w Index 82.9 % Qtr Profit Var 2.49 % EPS 64.8 ₹ Industry PE 32.1

📈 Optimal Entry Price: 4,400–4,450 ₹ (near 50 DMA support)

📉 Exit Strategy: If already holding, consider exiting near 4,650–4,700 ₹ (recent high resistance) or cut losses if price falls below 4,350 ₹.

Positive

  • 📊 Strong ROE (27.6%) and ROCE (19.8%) indicate efficient capital use.
  • 📈 EPS at 64.8 ₹ supports valuation strength.
  • 📉 PAT stability (504 Cr. vs 584 Cr.) with slight variation (+2.49%).
  • 📊 RSI at 51.7 reflects balanced momentum.
  • 📈 MACD positive at 35.1, confirming bullish crossover.
  • 📊 Institutional confidence with FII (+0.05%) stake increase.

Limitation

  • ⚠️ High P/E ratio (67.9) compared to industry PE (32.1), indicating valuation premium.
  • 📉 Debt-to-equity ratio at 1.69 adds leverage risk.
  • 📊 Dividend yield at 0.85% is modest.
  • 📉 DII holdings decreased (-0.09%), showing reduced domestic support.
  • ⚠️ Trading volume (3.22 lakh) lower than weekly average (3.89 lakh), showing reduced liquidity.

Company Negative News

  • ❌ Valuation stretched relative to industry benchmarks.
  • ⚠️ Leverage risk with debt-to-equity above 1.5.

Company Positive News

  • ✅ EPS strength and consistent profitability.
  • 📈 Institutional investors marginally increasing stake.
  • 📊 Strong 52-week performance (+82.9%).

Industry

  • 🌐 Industry PE at 32.1 is much lower, highlighting TORNTPHARM’s valuation premium.
  • 📊 Pharma sector remains resilient with strong demand drivers and defensive characteristics.

Conclusion

⚖️ TORNTPHARM is a strong swing trade candidate with robust fundamentals and bullish technicals. Entry near 4,400–4,450 ₹ offers favorable risk-reward, with upside potential toward 4,650–4,700 ₹. Traders should apply strict stop-loss discipline below 4,350 ₹ due to high valuation and leverage risks.

This analysis frames TORNTPHARM as a premium-valued but technically strong swing candidate. Would you like me to extend this into a pharma sector overlay comparing peers like Sun Pharma and Dr. Reddy’s to benchmark its swing potential?

Technical Analysis
Fundamental Analysis

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