Torrent Pharma: Riding on Strong Growth & Improving Fundamentals
Torrent Pharmaceuticals Ltd.
TORNTPHARM
has been showing consistent strength both fundamentally and technically. Here’s what stands out:
Fundamental Highlights
Strong EPS Growth (TTM) – profits per share rising steadily.
ROE & RoCE improving for the past 3 years → efficient use of shareholder funds and capital.
Net Profit Growth: Increasing along with rising profit margins (QoQ & YoY).
Low & reducing debt – balance sheet strength improving.
Consistent revenue growth in the last 2 quarters.
Annual EPS & Book Value improving for 2 consecutive years.
Zero promoter pledge – a strong vote of confidence.
Technical Signals
Stock trading above 20 DMA, 50 DMA, and 200 DMA → bullish momentum.
Near 52-week high – reflects positive investor sentiment.
Points to Note
High PE (over 40): Investors are paying a premium, so growth expectations are already high.
FII/FPI shareholding declined last quarter – something to keep an eye on.
3-Year CAGR Growth
Revenue: 10.25%
Net Profit: 9.78%
Operating Profit: 10.53%
Key Takeaway:
Torrent Pharma is a strong performer with improving profitability, low debt, and bullish technicals. However, valuations are expensive, so monitoring future earnings growth is crucial.