Torrent Pharmaceuticals Limited (TORNTPHARM.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+34.1%

₹6,202.44

vs ₹4,625.00 price

Levered DCF

₹8,476.30

After debt service

Piotroski score

2 / 9

Weak

Altman Z-score

4.78

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	66.02×	56.38×	54.67×	41.78×	60.8×	34.4×	32.56×	73.7×
P/B	17.02×	14.19×	13.21×	8.39×	7.94×	7.38×	6.92×	6.81×
P/S	10.22×	9.52×	8.57×	5.5×	5.61×	5.46×	4.29×	4.31×
EV / EBITDA	48.11×	29.68×	26.78×	19.74×	23.78×	18.69×	16.84×	22.38×
Gross margin	48.8%	74.5%	73.6%	70.1%	69.9%	71.7%	90.6%	87.2%
Operating margin	24.8%	25.9%	24.4%	22.6%	21.0%	23.1%	19.5%	18.3%
Net margin	15.5%	16.9%	15.7%	13.2%	9.2%	15.9%	13.2%	5.8%
Current ratio	1.13×	1.19×	1.03×	0.98×	1.17×	1.13×	0.91×	0.98×
Debt / equity	1.79×	0.42×	0.59×	0.87×	0.68×	0.84×	1.21×	1.28×
Interest coverage	8.99×	11.61×	7.28×	6.43×	6.94×	5.16×	3.37×	2.72×
Dividend yield	0.9%	1.0%	1.1%	1.7%	1.4%	0.8%	2.2%	1.0%
Payout ratio	59.6%	56.7%	61.3%	69.3%	87.1%	27.0%	70.1%	71.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	25.8%	25.2%	24.2%	20.1%	13.1%	21.4%	21.2%	9.2%
Return on invested capital	6.6%	17.2%	15.1%	11.6%	10.6%	13.5%	11.8%	9.6%
Return on assets	4.9%	12.8%	11.0%	8.3%	5.9%	8.9%	7.3%	3.1%
Free cash flow yield	1.4%	1.8%	3.1%	3.4%	3.4%	3.9%	3.0%	3.5%
Earnings yield	1.5%	1.8%	1.8%	2.4%	1.6%	2.9%	3.1%	1.4%
Enterprise value	₹1.6T	₹1.1T	₹937.3B	₹568.8B	₹509.2B	₹473.7B	₹385.5B	₹376B
Net debt / EBITDA	4.27×	0.71×	0.91×	1.69×	1.71×	1.7×	2.26×	3.24×
Cash conversion cycle (days)	119	151	89	157	196	188	143	20