Torrent Pharmaceuticals Intrinsic Value
TORNTPHARM Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹1543.52 | ₹1234.82 - ₹1852.22 | -60.8% | EPS: ₹70.16, Sector P/E: 22x |
| Book Value Method | asset | ₹898.34 | ₹808.51 - ₹988.17 | -77.2% | Book Value/Share: ₹449.17, P/B: 2.0x |
| Revenue Multiple Method | revenue | ₹1523.79 | ₹1371.41 - ₹1676.17 | -61.3% | Revenue/Share: ₹761.89, P/S: 2.0x |
| EBITDA Multiple Method | earnings | ₹2297.30 | ₹2067.57 - ₹2527.03 | -41.6% | EBITDA: ₹3948.00Cr, EV/EBITDA: 10x |
| Simple DCF (5Y) | dcf | ₹1574.72 | ₹1259.78 - ₹1889.66 | -60.0% | CF Growth: 6.6%, Discount: 15% |
| PEG Ratio Method | growth | ₹1181.04 | ₹1062.94 - ₹1299.14 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹1181.04 | ₹1062.94 - ₹1299.14 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 15.5x |
| ROE Based Valuation | profitability | ₹2238.11 | ₹2014.30 - ₹2461.92 | -43.1% | ROE: 31.1%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹1181.04 | ₹1062.94 - ₹1299.14 | -70.0% | EPS: ₹70.16, BVPS: ₹449.17 |
| Dividend Yield Method | dividend | ₹1280.00 | ₹1152.00 - ₹1408.00 | -67.5% | DPS: ₹32.00, Target Yield: 2.5% |
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Valuation Comparison Chart
TORNTPHARM Intrinsic Value Analysis
What is the intrinsic value of TORNTPHARM?
Based on our comprehensive analysis using 10 different valuation methods, the estimated intrinsic value of Torrent Pharmaceuticals (TORNTPHARM) is ₹1523.79 (median value). With the current market price of ₹3936.80, this represents a -61.3% variance from our estimated fair value.
The valuation range spans from ₹898.34 to ₹2297.30, indicating ₹898.34 - ₹2297.30.
Is TORNTPHARM undervalued or overvalued?
Based on our multi-method analysis, Torrent Pharmaceuticals (TORNTPHARM) appears to be trading above calculated value by approximately 61.3%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 2.10 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 1.97 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 31.1% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 31.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.86x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Torrent Pharmaceuticals
Additional stock information and data for TORNTPHARM
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹2,585 Cr | ₹2,311 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹3,266 Cr | ₹3,186 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹2,368 Cr | ₹1,201 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹1,803 Cr | ₹1,705 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹2,005 Cr | ₹1,783 Cr | Positive Free Cash Flow | 8/10 |