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 | -63.6% | EPS: ₹70.16, Sector P/E: 22x |
| Book Value Method | asset | ₹898.34 | ₹808.51 - ₹988.17 | -78.8% | Book Value/Share: ₹449.17, P/B: 2.0x |
| Revenue Multiple Method | revenue | ₹1523.79 | ₹1371.41 - ₹1676.17 | -64.1% | Revenue/Share: ₹761.89, P/S: 2.0x |
| EBITDA Multiple Method | earnings | ₹2297.30 | ₹2067.57 - ₹2527.03 | -45.8% | EBITDA: ₹3948.00Cr, EV/EBITDA: 10x |
| Simple DCF (5Y) | dcf | ₹1696.68 | ₹1357.34 - ₹2036.02 | -60.0% | CF Growth: 6.6%, Discount: 15% |
| PEG Ratio Method | growth | ₹1272.51 | ₹1145.26 - ₹1399.76 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹1272.51 | ₹1145.26 - ₹1399.76 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 15.5x |
| ROE Based Valuation | profitability | ₹2238.11 | ₹2014.30 - ₹2461.92 | -47.2% | ROE: 31.1%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹1272.51 | ₹1145.26 - ₹1399.76 | -70.0% | EPS: ₹70.16, BVPS: ₹449.17 |
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Valuation Comparison Chart
TORNTPHARM Intrinsic Value Analysis
What is the intrinsic value of TORNTPHARM?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Torrent Pharmaceuticals (TORNTPHARM) is ₹1523.79 (median value). With the current market price of ₹4241.70, this represents a -64.1% 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 64.1%.
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 |