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Torrent Pharmaceuticals Limited (500420) Fair Value & Analysis

Healthcare · IN · Market cap ₹388B

TP Torrent Pharmaceuticals Limited 500420 · BSE
Price₹4,876
Fair Value₹4,360
Upside-10.6%
Quality53/100
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Healthy Growth
Thin margins · 0.0% net margin
Moderate debt · generates free cash flow
Trails peers (1/9)
Evidence: Medium Range ₹1,984 – ₹7,472 Share as image

Fair value as of: Aug 14, 2026

From 24 valuation models · updated today

Share price −1.9% over the past month.

A solid business, but screening 11% overvalued on our models.

What matters now

  • The model range is unusually wide (₹1,984 to ₹7,472). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Our model range runs from ₹1,984 (bear) to ₹7,472 (bull), base ₹4,360. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 53/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

₹5,103 ₹1,177 Fair Value ₹4,360 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.

How to read this chart

60‑month range ₹1,177 – ₹5,103 · fair‑value band ₹1,984 – ₹7,472 · the ₹4,876 price screens above the ₹4,360 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 14, 2026.

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Analysis

Torrent Pharmaceuticals Limited (500420) currently trades at ₹4,876, while our model-based Fair Value estimate is ₹4,360, implying the stock looks roughly 10.6% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Net debt stands at ₹137B. The stock trades on a trailing P/E of 37.8 (as of Aug 14, 2026). Fundamentals as of Aug 14, 2026

Our scenario range runs from ₹1,984 (bear case) to ₹7,472 (bull case); at ₹4,876, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 7% below its 52-week high and 41% above its 52-week low. For context, the median of 10 Healthcare peers we cover trades at -14% fair-value upside, at -11%, 500420 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF ₹2,590 ₹5,567 ₹10,836 80
Residual Income ₹1,918 ₹2,603 ₹16,298 76
Rev-Margin DCF ₹2,353 ₹5,009 ₹8,361 74
All 24 models by family
DCF Models
FCF DCF ₹2,585 ₹5,708 ₹11,246 38
Owner Earnings ₹3,017 ₹6,487 ₹12,638 31
5Y Revenue Exit ₹2,353 ₹5,069 ₹8,716 39
5Y EBITDA Exit ₹3,695 ₹7,780 ₹12,859 41
5Y P/E Exit ₹2,730 ₹5,830 ₹9,316 38
10Y Revenue Exit ₹2,274 ₹4,900 ₹8,833 36
10Y EBITDA Exit ₹3,303 ₹6,910 ₹12,313 37
10Y P/E Exit ₹2,654 ₹5,464 ₹9,337 35
Earnings-Based
Graham-Dodd ₹1,850 ₹7,976 ₹10,901 54
Lynch FV ₹2,046 ₹2,922 ₹3,799 50
PEG = 1.0 ₹2,046 ₹2,922 ₹3,799 46
EPV ₹2,093 ₹2,696 ₹3,232 59
Multiples
P/E Multiple ₹4,489 ₹5,986 ₹7,482 63
P/S Multiple ₹3,469 ₹4,625 ₹5,782 58
P/B Multiple ₹3,469 ₹4,625 ₹5,782 55
EV/EBIT ₹4,191 ₹6,030 ₹7,868 53
EV/EBITDA ₹4,695 ₹6,702 ₹8,708 54
EV/Revenue ₹2,308 ₹3,864 ₹5,421 43
Asset-Based
NCAV (Graham) ₹527.50 ₹706.85 ₹1,055 50
Growth DCF
Growth DCF ₹2,590 ₹5,567 ₹10,836 80
Rev-Margin DCF ₹2,353 ₹5,009 ₹8,361 74
Economic Profit
Residual Income ₹1,918 ₹2,603 ₹16,298 76
ROIC Compounder ₹2,481 ₹3,929 ₹5,946 72
Growth Earnings
Growth-Adj P/E ₹3,509 ₹5,013 ₹6,516 68

Widest divergence: DCF Models (₹5,708) versus Asset-Based (₹706.85). Highest evidence: Growth DCF (80).

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Key figures & financial health

Free cash flow ₹23.5B FY2025
P/E ratio 37.8 as of Aug 14, 2026
EPS (TTM) ₹60.62
Net debt ₹137B FY2025

Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 52 · Market factors (momentum, volatility) 75

Profitability 51
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 27
Balance sheet, leverage, solvency risk
Investment 44
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 75
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India and internationally.

Full company description

Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India and internationally. The company offers products in various therapeutic areas, including cardiovascular, central nervous system, gastrointestinal, diabetology, anti-infective, pain management, nephrology, oncology, gynecology, pediatric, wound care, and nutraceuticals. It also provides contract manufacturing services. 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 Private Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Torrent Pharmaceuticals Limited reported revenue of ₹138B in FY2025 versus ₹85.1B in FY2021, a compound +12.8%/yr. Reported net income was ₹21.6B in FY2025, compounding +29.2%/yr from FY2021.

Growth Quality 84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
₹138B
Latest YoY
+19.4%
Avg. growth/yr (3Y) 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.
+12.7%
Avg. growth/yr (5Y) 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.
+11.4%
Avg. growth/yr (10Y) 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.
+7.5%
Revenue +12.8%/yr
FY21 ₹85.1B
FY22 ₹96.2B
FY23 ₹107B
FY24 ₹115B
FY25 ₹138B
Net income +29.2%/yr
FY21 ₹7.8B
FY22 ₹12.5B
FY23 ₹16.6B
FY24 ₹19.1B
FY25 ₹21.6B

500420 screens 11% overvalued. Compare with GlaxoSmithKline Pharmaceuticals Limited →

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Cite: Fair Value Calculator (2026). "Torrent Pharmaceuticals Limited Fair Value". https://www.fairvalue-calculator.com/stock/500420

Peer Group

Pharmaceuticals · 25 stocks

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.

Quality Score 53 · Below median
Fair Value upside −11% · Above median
Return on assets 0% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 0% · Bottom 25%
Revenue growth 0% · Below median
Debt / equity 1.39× · Higher than 75% of peers

Valuation Multiples vs Pharmaceuticals median · lower = cheaper

P/FCF 0.2× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 19 · sector 16
FUTURE 0 · sector 60
PAST 0 · sector 24
HEALTH 31 · sector 95
DIVIDEND 0 · sector 28

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Pharmaceuticals stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).

Stock Price Fair Value vs Fair Value
GlaxoSmithKline Pharmaceuticals Limited 500660 ₹2,620 ₹1,452 -45%
Caregen Co 214370 64,400 KRW 7,277 KRW -89%
ST Pharm Co 237690 107,000 KRW 50,110 KRW -53%
Oscotec Inc 039200 38,800 KRW 33,210 KRW -14%
DongKook Pharmaceutical Co 086450 21,600 KRW 31,283 KRW +45%
Kolon Life Science Inc 102940 17,460 KRW 37,129 KRW +113%
Huons Global Co 084110 25,100 KRW 58,482 KRW +133%
BINEX Co 053030 7,300 KRW 1,844 KRW -75%
Anterogen.Co.,Ltd., a bio-venture company, 065660 15,520 KRW 4,741 KRW -69%
Kyung Dong Pharmaceutical Co 011040 5,180 KRW 6,165 KRW +19%

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Frequently asked questions

Is Torrent Pharmaceuticals Limited (500420) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of ₹4,360 versus a price of ₹4,876, about −11% (overvalued).
What is the fair value of 500420?
Our model-based fair value for Torrent Pharmaceuticals Limited is ₹4,360 (as of Aug 14, 2026), built from audited fundamentals. The current price is ₹4,876.
What is the quality score of 500420?
Torrent Pharmaceuticals Limited has a Quality Score of 53/100. 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 net profit margin of 500420?
The net profit margin of Torrent Pharmaceuticals Limited is about 0.0%, meaning it keeps roughly 0.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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