Torrent Pharmaceuticals Limited (TORNTPHARM.NS) stock analysis

In our weekly check, Torrent Pharmaceuticals Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3.

About Torrent Pharmaceuticals Limited

Torrent Pharmaceuticals Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in India, listed on NSE as TORNTPHARM.NS.

What our checks show for TORNTPHARM.NS

Red flags

• Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
• The gross margin fell by 21 points, to 48.8%: costs are rising faster than prices.
• The dividend takes 5657% of profit: little cushion if profit falls.

Warning signs

• Net debt is 4.3x a year of EBITDA (debt/equity 0.77). That limits room in a downturn and raises refinancing risk.
• The stock has fallen as much as 55% from a peak. Would you have held through that?
• Thinly traded (about 379 thousand shares a day): buying and selling can move the price.

Strengths

• The net margin rose by 6.2 points over 5 years, to 15.5%.
• Operating cash flow is 1.22x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 22.6% a year over the next years.
• Analysts expect revenue to grow about 21.3% a year over the next years.
• Earnings per share grew 20.2% a year over the last 3 years.
• Net profit grew 20.2% a year over the last 3 years.

Similar companies

4523.T · DIVISLAB.NS · 4507.T · LAURUSLABS.NS · LUPIN.NS · SUNPHARMA.NS

Questions

What grade does Torrent Pharmaceuticals Limited (TORNTPHARM.NS) have?

In our weekly check, Torrent Pharmaceuticals Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TORNTPHARM.NS stock?

This week's biggest flags for Torrent Pharmaceuticals Limited: Weak interest cover, Gross margin falling, Dividend stretched. In total 6 of 25 checks show a warning or a red flag.

What does Torrent Pharmaceuticals Limited do?

Torrent Pharmaceuticals Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in India, listed on NSE as TORNTPHARM.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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