Torrent Pharma. (TORNTPHARM)

FairStock Score: 54/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats: Buffett's business quality and Graham's margin of safety. Torrent Pharma looks like a quality Indian pharma franchise: ROE 29.93% and ROCE 27.05% show capital efficiency, free cash flow is ₹2,036 Cr, and a Piotroski F-Score of 8/9 plus Altman Z-Score of 8.47 suggests balance-sheet strength. Promoter holding of 68.31% aligns owners with shareholders. Latest quarterly sales of ₹3,303 Cr and net profit of ₹635 Cr are respectable, but the growth picture is mixed: sales growth of 58.45% clashes with profit growth of -10.71%, and the 5-year revenue CAGR is only 7.72%. Debt/Equity of 0.85 is not alarming but not a fortress. The real issue is price. At ₹4,833, P/E is 76.92, P/B is 19.50, PEG is 5.15, and EV/EBITDA is 82.13. Graham Number is ₹582.03, DCF intrinsic value is ₹3,221.04, and margin of safety is -644.51%. I would not call that an investment; I would call it a wonderful optimism test. FairStock Score of 54/100 says mixed. Dividend yield 0.79% offers little income. The 52-week range ₹3,480.60–₹5,250 shows market volatility. Torrent may be a stalwart pharma business, but at this valuation, the stock already discounts years of flawless execution. I want to buy good businesses when price is fair; here the numbers say wait for a much larger margin of safety. In Graham's terms, price is what you pay and value is what you get; the gap here is negative.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer