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Torrent Pharmaceuticals Limited (TORNTPHARM) Fair Value & Analysis

Healthcare · IN · Market cap ₹1.6T (≈ $17.1B) · ISIN INE685A01028

What is Torrent Pharmaceuticals Limited really worth?

TP Torrent Pharmaceuticals Limited TORNTPHARM · NSE
Price₹4,857
Fair Value₹1,163
Upside−76.1%
Quality50/100

A solid business, but trading 318% above our fair value of ₹1,163.

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Strengths

Healthy Growth (revenue 5y +12.1 %/yr)
Solidly profitable · 15.5% net margin
Moderate debt · generates free cash flow

Risks

!Mixed vs. peers (6/14)
!Moderate moat 64/100
!Weak on dividend: 14 out of 100

For context

·0.72% dividend yield
Evidence: High Range ₹493.96 – ₹1,758

Fair value as of: Aug 14, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Aug 14, 2026, revised from ₹1,329 to ₹1,163 (−12.5%) since Jul 18, 2026. Share price −2.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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 (₹493.96 to ₹1,758). 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.

Price vs Fair Value (5 years)

₹5,123 ₹1,197 Fair Value ₹1,163 May 2021 Sep 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 ₹1,197 – ₹5,123 · fair‑value band ₹493.96 – ₹1,758 · the ₹4,857 price screens above the ₹1,163 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 (TORNTPHARM) currently trades at ₹4,857, while our model-based Fair Value estimate is ₹1,163, implying the stock looks roughly 317.7% overvalued today. The Quality Score stands at 50/100 (solid quality), in the Healthcare sector. Bull case: the DCF Models group reads highest at a median of ₹1,312 per share, and 0 of the 26 models we run sit above the ₹4,857 price. Bear case: the Asset-Based group reads lowest at ₹166.07, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

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 Aug 14, 2026

Our scenario range runs from ₹493.96 (bear case) to ₹1,758 (bull case); at ₹4,857, 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 56% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −45% fair-value upside, at −76%, TORNTPHARM screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹11.24 per share, which is 1.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (₹166.07 to ₹2,151). Read the values as a conservative anchor, not as a price target.
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
FCF DCF ₹497.52 ₹1,239 ₹2,625 74
EPV ₹495.25 ₹637.49 ₹763.93 74
Growth DCF ₹489.97 ₹1,170 ₹2,421 73
All 26 models by family
DCF Models
FCF DCF ₹497.52 ₹1,239 ₹2,625 74
Owner Earnings ₹766.26 ₹1,755 ₹3,602 71
5Y Revenue Exit ₹538.53 ₹1,255 ₹2,248 69
5Y EBITDA Exit ₹858.81 ₹1,928 ₹3,302 72
5Y P/E Exit ₹620.01 ₹1,426 ₹2,367 68
10Y Revenue Exit ₹489.00 ₹1,182 ₹2,287 62
10Y EBITDA Exit ₹739.79 ₹1,693 ₹3,208 64
10Y P/E Exit ₹576.53 ₹1,312 ₹2,391 60
Earnings-Based
Graham-Dodd ₹434.59 ₹2,151 ₹2,966 64
Lynch FV ₹579.79 ₹828.27 ₹1,077 61
PEG = 1.0 ₹579.79 ₹828.27 ₹1,077 57
EPV ₹495.25 ₹637.49 ₹763.93 74
Dividend Discount
Gordon GGM ₹366.35 ₹799.80 ₹1,346 65
DDM Multi-Stage ₹366.35 ₹655.17 ₹833.52 66
Multiples
P/E Multiple ₹1,055 ₹1,406 ₹1,758 63
P/S Multiple ₹814.85 ₹1,086 ₹1,358 58
P/B Multiple ₹814.85 ₹1,086 ₹1,358 55
EV/EBIT ₹993.42 ₹1,428 ₹1,863 65
EV/EBITDA ₹1,110 ₹1,584 ₹2,058 67
EV/Revenue ₹556.65 ₹928.41 ₹1,300 52
Asset-Based
NCAV (Graham) ₹123.93 ₹166.07 ₹247.87 54
Growth DCF
Growth DCF ₹489.97 ₹1,170 ₹2,421 73
Rev-Margin DCF ₹538.53 ₹1,230 ₹2,141 69
Economic Profit
Residual Income ₹416.96 ₹518.42 ₹2,069 64
ROIC Compounder ₹606.35 ₹989.06 ₹1,537 69
Growth Earnings
Growth-Adj P/E ₹913.18 ₹1,305 ₹1,696 67

Widest divergence: DCF Models (₹1,312) versus Asset-Based (₹166.07). Highest evidence: FCF DCF (74).

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Key figures & financial health

P/E ratio 75.8
P/S ratio 11.7 P/E × margin
EPS (TTM) ₹64.10 price ÷ EPS = P/E 75.8
Dividend yield 0.7% payout 54.6%
Net margin 15.5% FY2026
Return on equity 17.0% TTM
More key figures
Profitability
Return on assets (EBIT) 14.4% avg 5y
Operating margin 20.2% TTM
Growth
Revenue (TTM) ₹140B TTM
Revenue growth (YoY) +41.8% 3y avg +13.9%
EPS growth (YoY) −21.7%
Balance sheet & cash flow
Free cash flow ₹19.6B FY2026
Net debt ₹139B FY2026 · ≈ 7.1 yrs of FCF

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

Quality Score breakdown

Overall quality 50/100

Of which business quality 49 · Market factors (momentum, volatility) 77

Profitability 48
Margins and returns on capital today
Quality Growth 19
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 44
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 64
Price trend over the last 3–12 months (market factor)
52W Momentum 80
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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.

Growth Quality 96/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹140B
Latest YoY
+23.5%
Avg. revenue 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.
+13.9%
Avg. revenue 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.
+12.1%
Avg. revenue growth/yr (21Y) 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.
+16.7%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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% (16.1 + 0.7)
Revenue +13.5%/yr
FY22 ₹84.2B
FY23 ₹94.6B
FY24 ₹106B
FY25 ₹113B
FY26 ₹140B
Net income +29.2%/yr
FY22 ₹7.8B
FY23 ₹12.5B
FY24 ₹16.6B
FY25 ₹19.1B
FY26 ₹21.6B
Character of growth · EPS growth decomposed (2015-2026) +5.9 % p.a.
Revenue per share +8.8 %

of which total revenue +8.8 % · buybacks/dilution +0.0 %

EBIT margin −0.7 %
Tax rate −0.9 %
Residual (interest, one-offs) −1.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

TORNTPHARM screens 318% overvalued. Compare with Merck KGaA →

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

Peer Group

Drug Manufacturers - Specialty & Generic · 608 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 50 · Below median
Fair Value upside −76% · Bottom 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 20% · Top 25%
Revenue growth 42% · Top 25%
Dividend yield (TTM) 0.7% · Below median
Debt / equity 1.39× · Higher than 75% of peers

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

P/E (TTM) 75.8× · Pricier than 75% of peers
P/B 19.22× · Pricier than 75% of peers
P/S (TTM) 11.53× · Pricier than 75% of peers
P/FCF 0.9× · Cheaper than median
EV/EBITDA 38.2× · Pricier than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 2
FUTURE100 · sector 22
PAST68 · sector 26
HEALTH31 · sector 97
DIVIDEND14 · sector 29

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.

None of the checked exposures detected

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).

Stock Price Fair Value vs Fair Value
Merck KGaA MRK €140.25 €106.48 −24%
Takeda Pharmaceutical Company TAK $18.03 $11.11 −38%
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.76 ¥25.94 −52%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,944 ₹989.50 −49%
Galderma Group GALD CHF 178.55 CHF 55.07 −69%
Haleon plc HLN $10.11 $7.64 −24%
Teva Pharmaceutical Industries Limited TEVA $36.05 $15.33 −57%
Sandoz Group SDZ CHF 70.66 CHF 39.21 −45%
Zoetis Inc ZTS $77.10 $104.88 +36%
Hansoh Pharmaceutical Group 3692 HK$35.12 HK$16.18 −54%

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Frequently asked questions

Is Torrent Pharmaceuticals Limited (TORNTPHARM) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of ₹1,163 versus a price of ₹4,857, about −76% upside (overvalued).
What is the fair value of TORNTPHARM?
Our model-based fair value for Torrent Pharmaceuticals Limited is ₹1,163 (as of Aug 14, 2026), built from audited fundamentals. The current price: ₹4,857.
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 revenue of Torrent Pharmaceuticals Limited (TORNTPHARM)?
Torrent Pharmaceuticals Limited reported trailing-twelve-month revenue of about ₹140B (latest available figure, as of Aug 14, 2026).
What is the net profit margin of TORNTPHARM?
The net profit margin of Torrent Pharmaceuticals Limited is about 15.5%, meaning it keeps roughly 15.5% of revenue as net income. Based on the latest reported figures.
Does Torrent Pharmaceuticals Limited pay a dividend?
Torrent Pharmaceuticals Limited currently shows a dividend yield of about 0.72% relative to its recent price (as of Aug 14, 2026).
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