Torrent Pharmaceuticals Limited (TORNTPHARM) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Torrent Pharmaceuticals Limited stock ₹2,099, price ₹4,710, that is 55.4% below the price, quality 50 out of 100. Rating: strongly overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range ₹1,197 – ₹5,123 · fair‑value band ₹944.00 – ₹3,066 · the ₹4,710 price screens above the ₹2,099 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, marketing, and distribution of branded and generic pharmaceutical formulations in India, the United States, Brazil, Germany, Malta, and internationally.
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The company offers products in various therapeutic areas, including anti-diabetic, anti-microbial, cardiovascular, CNS, urology, gynecology, oncology, gastro-intestinal, nephrology, neuro-psychiatric, dermatology, pulmonology, pediatric treatments, nutritional, pain management, anti-infective, and miscellaneous, as well as vitamins, minerals, and nutrients.
It also provides contract manufacturing services. The company offers its products under Tedibar, Shelcal, Unienzyme, ProZuca, and Ahaglow brands. The company was formerly known as Trinity Laboratories and changed its name to Torrent Pharmaceuticals Limited in 1971.
The company was founded in 1959 and is based in Ahmedabad, India. Torrent Pharmaceuticals Limited is a subsidiary of Torrent Investments Private Limited.
Stock analysis
Torrent Pharmaceuticals Limited (TORNTPHARM) currently trades at ₹4,710, while our model-based Fair Value estimate is ₹2,099, 55% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹1,183 per share, and 0 of the 24 models we run sit above the ₹4,710 price.
Bear case: the Economic Profit group reads lowest at ₹402.86, and 24 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: ₹944.00 (bear) to ₹3,066 (bull), the price of ₹4,710 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 50/100 (solid quality), in the Healthcare sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Torrent Pharmaceuticals Limited reported revenue of ₹140B in FY2026 versus ₹84.2B in FY2022, a compound +13.5%/yr. Reported net income was ₹21.6B in FY2026, compounding +29.2%/yr from FY2022.
Key figures
Market cap ₹1.8T (≈ $19.2B) Large · P/E ratio 78.3 · P/S ratio 10.5 · EPS (TTM) ₹60.18 · Dividend yield 0.7% · Net margin 12.2% · Return on equity 15.7% · Return on assets (EBIT) 14.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 60 out of 100 (low confidence).
What moves the price
The share trades about 8% below its 52-week high and 34% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −27% fair-value upside, at −55%, TORNTPHARM screens richer than that median.
Fair Value models
Bear₹944.00Fair Value ₹2,099Bull₹3,066
Price ₹4,710 · Downside -55.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹15.11 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.96/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+23.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.1%
Start year 2021 (pandemic). Over 10 years: +7.9% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.7%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+16.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+16.1%
Dividend (yield on the price)0.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.16.1% vs 8.8%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.20% → 26%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+40.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+16.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +34.9% a year for the price and +11.6% for the forecasts.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 554 stocks
Beats the industry median on 5/13 measures
Overall it trails its industry peers.
Valuation
Quality Score50 · Below median
Fair Value upside−55.4% · Bottom 25%
Profitability
Return on equity (12 months)15.7% · Top 25%
Return on assets4.9% · Above median
Net margin (12 months)12.2% · Above median
Operating margin (12 months)21.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)50.8% · Top 25%
Dividend yield (12 months)0.7% · Below median
Balance sheet
Debt / equity1.39× · Highest 25%
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
P/E (12 months)78.3× · Priciest 25%
P/B21.67× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)10.45× · Priciest 25%
Price / free cash flow93.0× · Priciest 25%
EV/EBITDA33.7× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 16
FUTURE (revenue growth)100· sector 25
PAST (return on equity)63· sector 29
HEALTH (low debt)31· sector 96
DIVIDEND (yield)15· sector 33
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Torrent Pharmaceuticals Limited (TORNTPHARM) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of ₹2,099 versus a price of ₹4,710, about 55% lower (overvalued).
What is the fair value of TORNTPHARM?
Our model-based fair value for Torrent Pharmaceuticals Limited is ₹2,099 (as of Nov 1, 2026), built from audited fundamentals. The current price: ₹4,710.
What is the quality score of TORNTPHARM?
Torrent Pharmaceuticals Limited has a Quality Score of 50/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Torrent Pharmaceuticals Limited (TORNTPHARM)?
Our model-based price target is the fair value of ₹2,099 (as of Nov 1, 2026) from 24 valuation models. Cautious scenario ₹944.00, optimistic scenario ₹3,066. It is a calculation from audited fundamentals, not an analyst target.
What is the Torrent Pharmaceuticals Limited stock forecast for 2026?
Our models put fair value at ₹2,099, about 55% lower versus a price of ₹4,710 (overvalued). Cautious scenario ₹944.00, optimistic scenario ₹3,066. The calculation is refreshed regularly with new filings.
What is the revenue of Torrent Pharmaceuticals Limited (TORNTPHARM)?
Torrent Pharmaceuticals Limited reported trailing-twelve-month revenue of about ₹174B (latest available figure, as of Nov 1, 2026).
Does Torrent Pharmaceuticals Limited pay a dividend?
Torrent Pharmaceuticals Limited currently shows a dividend yield of 0.74% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Torrent Pharmaceuticals Limited (TORNTPHARM)?
For today's price to be fair in a discounted-cash-flow model, Torrent Pharmaceuticals Limited would have to grow free cash flow by +40.5 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.1 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of TORNTPHARM use?
Our models discount Torrent Pharmaceuticals Limited at 10.4 %: a base by market capitalisation (large), damped by beta 0.14, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Torrent Pharmaceuticals Limited that is +40.5 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has Torrent Pharmaceuticals Limited (TORNTPHARM) delivered so far?
Over the past 5 years revenue at Torrent Pharmaceuticals Limited grew +12.1 % a year. The price currently implies +40.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Torrent Pharmaceuticals Limited (TORNTPHARM) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into Torrent Pharmaceuticals Limited (+40.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Torrent Pharmaceuticals Limited (TORNTPHARM)?
The free-cash-flow yield on the price is 1.23 %: that much free cash flow Torrent Pharmaceuticals Limited produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Torrent Pharmaceuticals Limited (TORNTPHARM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Torrent Pharmaceuticals Limited it is ₹2,099 per share (as of Nov 1, 2026), against a price of ₹4,710. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Torrent Pharmaceuticals Limited stock overvalued or undervalued in 2026?
As of Nov 1, 2026, TORNTPHARM trades above its calculated fair value: price ₹4,710, fair value ₹2,099, a gap of about −55% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TORNTPHARM?
No. The price is what the market pays today (₹4,710); the fair value is what the company's own numbers justify (₹2,099). For Torrent Pharmaceuticals Limited the two are ₹2,611 per share apart. That gap is exactly why we show both numbers side by side.
How much is Torrent Pharmaceuticals Limited worth?
The market values Torrent Pharmaceuticals Limited at about ₹1.8T (market capitalisation, as of Nov 1, 2026). Per share that is ₹4,710; our models calculate a fair value of ₹2,099 per share.
What do the bullish and bearish scenarios say about TORNTPHARM?
Our models span a range for Torrent Pharmaceuticals Limited: cautious scenario ₹944.00, base ₹2,099, optimistic ₹3,066 per share (as of Nov 1, 2026, price ₹4,710). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TORNTPHARM?
Torrent Pharmaceuticals Limited trades at a price-to-earnings ratio of 78.3 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹2,099 is built from several models across several years. Other multiples: P/B 21.7, P/S 10.5, EV/EBITDA 33.7.
How solid is the balance sheet of Torrent Pharmaceuticals Limited (TORNTPHARM)?
Balance-sheet figures for Torrent Pharmaceuticals Limited (as of Nov 1, 2026): return on equity 15.7%, debt of 1.39 per unit of equity. They feed the Quality Score of 50/100, which measures business quality independently of the share price.
How far is TORNTPHARM from its 52-week high?
Torrent Pharmaceuticals Limited trades at ₹4,710, about 8% below its 52-week high of ₹5,123 and 34% above the low of ₹3,522 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹2,099 is for.
Which stocks are comparable to Torrent Pharmaceuticals Limited?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Galderma Group, Teva Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Torrent Pharmaceuticals Limited stock attractive at the current price?
The data as of Nov 1, 2026: price ₹4,710, calculated fair value ₹2,099 (−55%), Quality Score 50/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TORNTPHARM calculated?
We run Torrent Pharmaceuticals Limited through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹2,099, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Torrent Pharmaceuticals Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Torrent Pharmaceuticals Limited (TORNTPHARM)?
The closing price on Nov 5, 2026 was ₹4,710. Our model-based fair value is ₹2,099, about 55% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Torrent Pharmaceuticals Limited right now?
The price sits above even our optimistic bull case (₹3,066). The favourable scenario is already priced in. The model range is unusually wide (₹944.00 to ₹3,066). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Torrent Pharmaceuticals Limited (TORNTPHARM) come from?
Earnings per share at Torrent Pharmaceuticals Limited grew +5.9 % a year from 2015 to 2026. Broken into its drivers: revenue per share +8.8 %, EBIT margin −0.7 %, tax rate −0.9 %, residual (interest, one-offs) −1.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Torrent Pharmaceuticals Limited
How large is the market capitalisation of Torrent Pharmaceuticals Limited (TORNTPHARM)?
The market capitalisation of Torrent Pharmaceuticals Limited is ₹1.8T (≈ $19.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Torrent Pharmaceuticals Limited (TORNTPHARM)?
The price-to-sales ratio of Torrent Pharmaceuticals Limited is 10.5 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Torrent Pharmaceuticals Limited (TORNTPHARM)?
Earnings per share at Torrent Pharmaceuticals Limited are ₹60.18 (price ÷ EPS = P/E 78.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Torrent Pharmaceuticals Limited (TORNTPHARM)?
The dividend yield of Torrent Pharmaceuticals Limited is 0.7% (payout 58.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Torrent Pharmaceuticals Limited (TORNTPHARM)?
The net margin of Torrent Pharmaceuticals Limited is 12.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Torrent Pharmaceuticals Limited (TORNTPHARM)?
The return on equity (ROE) of Torrent Pharmaceuticals Limited is 15.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Torrent Pharmaceuticals Limited (TORNTPHARM)?
On an EBIT basis the return on assets of Torrent Pharmaceuticals Limited is 14.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Torrent Pharmaceuticals Limited (TORNTPHARM)?
The operating margin of Torrent Pharmaceuticals Limited is 21.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Torrent Pharmaceuticals Limited (TORNTPHARM)?
Revenue at Torrent Pharmaceuticals Limited is growing +50.8% versus a year earlier (3y avg +13.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Torrent Pharmaceuticals Limited (TORNTPHARM)?
Earnings per share at Torrent Pharmaceuticals Limited are growing −19.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Torrent Pharmaceuticals Limited (TORNTPHARM) carry?
The net debt of Torrent Pharmaceuticals Limited is ₹139B (fiscal year 2026, ≈ 7.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 1, 2026