Torrent Pharmaceuticals Limited (TORNTPHARM) Fair Value & Analysis

Healthcare · IN · Market cap ₹1.6T

A solid business, but screening 73% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (₹1,758). The favourable scenario is already priced in.
• The model range is unusually wide (₹645.11 to ₹1,758). The outcome hinges heavily on assumptions, so read the point estimate with caution.
• Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ₹1,178 – ₹5,123 · fair‑value band ₹645.11 – ₹1,758 · the ₹4,956 price screens above the ₹1,329 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

Torrent Pharmaceuticals Limited (TORNTPHARM) currently trades at ₹4,956, while our model-based Fair Value estimate is ₹1,329, implying the stock looks roughly 73.2% overvalued today. We read business quality at 61/100 (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).

Over the trailing twelve months, Torrent Pharmaceuticals Limited generated revenue of ₹140B at a net margin of 15.5%. Revenue grew 41.8% year over year. It earns a return on equity of 17.0%. Net debt stands at ₹139B. Fundamentals as of Jul 18, 2026

Our scenario range runs from ₹645.11 (bear case) to ₹1,758 (bull case); at ₹4,956, the current price sits above 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 near its 52-week high and 59% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -39% fair-value upside, at -73%, TORNTPHARM screens richer 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.

Widest divergence: Growth Earnings (₹1,240) versus Asset-Based (₹166.07). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

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.

Full company description

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. 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.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

TORNTPHARM screens 73% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

Peer Group

Drug Manufacturers - Specialty & Generic · 625 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.

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

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 0: the price sits above our fair-value range.

Insider activity: 45/100

Values & ESG

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

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

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Frequently asked questions

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.