Torrent Pharmaceuticals Limited is a leading pharma company in India based in the city of Ahmedabad. It is known for its products in the therapeutic segments of the central nervous system (CNS), cardiovascular (CV), pain management, gynaecology, diabetology, among others.
The market capitalisation of Torrent Pharmaceuticals Limited, as of early June 2018, is more than Rs.23,700 crore.
Company’s Wealth and Recent Performance
- For the quarter ended on March 31, 2018, the total consolidated revenue was reported to be at Rs.1,722 crore. This translates into a 20% increase over the same quarter last year. The net profit after tax for the same period was Rs.228 crore in contrast to Rs.206 crore reported at the end of Q4 FY17.
- Considering the performance of the company on a yearly basis, its total income from operations for the year ended March 31, 2018, was stated to be at Rs.6,002 crore. This is a 2% increase over the previous fiscal year. Its revenues in India for the year grew by 19% while in Germany, the increase was by 12%.
- The net profit after tax for the FY 2017-18 was stated to be at Rs.678 crore. This comes as a sharp decline over the net PAT for the previous year, which was reported to be Rs.934 crore. The sharp decline in profit came primarily because of an increase in total expenses and taxes for the period.
- A final dividend of Rs.5 per equity share has also been declared by the Board of Directors. The company’s total assets for the year were reported to be worth Rs.14,243 crore.
Torrent Pharmaceuticals Limited Stock Trends in 2018
- At the start of 2018, the share price of Torrent Pharmaceuticals Limited was Rs.1,384 on the National Stock Exchange. The prices continued to fluctuate around the Rs.1,400 level for the first half of the month. In the second half, the stocks were traded at levels above Rs.1,400. However, towards the end of the month, the prices went down dramatically to enter the Rs.1,300 territory.
- In February, the prices rose again and the stocks managed to recover their previous losses. It is interesting to note that the stock price of Torrent Pharmaceuticals rose at a time during which BSE SENSEX lost more than 1,000 points. However, this rally didn’t last for long. As SENSEX recovered, the stocks of Torrent Pharma went down to be once again traded in the Rs.1,300 territory.
- The month of March was a disastrous one for the investors. The share price lost more than Rs.100 in a matter of two weeks. In fact, it shed all the gains it had made during the year and went down to be traded at levels below Rs.1,250. The closing price at the end of March 2018 was Rs.1,249.75 on NSE.
- The prices recovered splendidly in the month of April, much to the relief of shareholders. It not only managed to make up for its previous losses, but it also went up to reach its previous levels of Rs.1,390. The was driven mainly by the positive developments and the company’s focus on its recent acquisitions.
- The month of May turned out to be a rocky one for the investors. The shares commenced the month trading at Rs.1,422.50. The prices dropped gradually over the course of the month, although the fall wasn’t as severe as seen in March. For the most of May, the shares changed hands at prices well below the Rs.1,400 mark. Towards the end of the month, the stocks showed signs of recovery. The closing price on May 31, 2018, was Rs.1,411.50 on NSE.
Torrent Pharmaceuticals Limited Stock Trends in 2016 and 2017
- The Torrent Pharmaceuticals share price at the start of January 2016 was Rs.1,444 on the National Stock Exchange. The prices didn’t vary drastically for the first half of the month. Post mid-January, the prices went into the Rs.1,300 territory. The month of February did not bring any joy to the investors either.
- The prices dropped down to levels below Rs.1,300. It wasn’t until March that the prices recovered. By the end of the month, the stocks were being traded at levels around Rs.1,350. An interim dividend of 400% and 300% was announced in February and March respectively.
- Through the most of April, the share price remained well-above Rs.1,400. In May, however, the prices dipped slightly although, they managed to remain above the Rs.1,350 mark. Things did not change much in June either as the stock price of Torrent Pharma remained at levels above Rs.1,300. The closing price on June 30, 2016, was Rs.1,372.85.
- Through the course of July and August, the prices exhibited a bullish behaviour. The stock price rose handsomely to make excellent gains in these two months. From being traded at levels around Rs.1,370, the price went up to cross Rs.1,430 by the end of July and Rs.1,600 by the end of August. Within two months, the stock price of Torrent Pharma rose by roughly 20 percent, thus reaching its highest levels since September ‘15.
- In September, the stocks continued to be traded at levels well-above Rs.1,600. The same was the case for the greater part of October as well. Towards the end of the month, the shares took a sharp nosedive. By the time demonetisation took place, the stocks had suffered heavily. In less than 10 days, the stocks lost more than 20% and went down in the Rs.1,300 territory.
- The prices did attempt to recover in the final few weeks of the year, although it was in vain. The shares recovered to Rs.1,400 levels towards the end of November but soon retreated back to their previous levels. The closing price at the end of the year was Rs.1,283.65.
- January 2017 did not bring any reprieve to the investors. The share price rose slightly in the first week but soon commenced a bearish run. By mid-February, the shares of Torrent Pharma were changing hands at levels around Rs.1,250. Around the same time, the company announced an interim dividend of 200%. It was after this announcement that the prices rose again and this time, they managed to enter the Rs.1,500 territory by the end of March.
- Instead of continuing the rally, the share price went on a downward path. The prices declined gradually in April without any sharp nosedives. In May, however, the stock price plummeted distinctly to enter the Rs.1,300 territory. There was another fall in the final week of May and this time, the stocks went below the Rs.1,300 mark.
- A final dividend of 80% was announced in June but that didn’t do much for the investors. In July, the prices went on an upward path although the rise wasn’t as discernible as it was in the previous months. At the end of July, the closing price was Rs.1,318. The month of August was a rocky one for the investors as the prices varied dramatically, only to go down. For the most of August, the shares were being traded in the Rs.1,200 territory.
- A similar trend was seen in September as well. The Torrent Pharma stock price at the end of September was Rs.1,230.95. The share price rose slightly in October and for a brief period, the stocks were traded at levels above Rs.1,300. However, the prices failed to stabilise at those levels and went down once again. It wasn’t until December that the stocks commenced a bull run and managed to touch the Rs.1,400 mark again. The closing price at the end of the year was Rs.1,418.55 on the NSE.
Should you invest in Torrent Pharmaceuticals Limited?
- From a financial standpoint, Torrent Pharmaceuticals has done quite well in the last financial year. Its revenues have improved not only in India, but also in international markets like Brazil, the United States, and Germany.
- At a time when the entire pharmaceutical sector has been consolidating its position, Torrent Pharma has been one of the few companies that have taken great strides to expand its operations and capabilities. This includes the acquisition of US-based Bio-Pharm Incorporation which also includes the US FDA approved manufacturing facility.
- Additionally, it also acquired Unichem’s business in Nepal and India, along with its manufacturing facility in Sikkim. It also acquired women healthcare brands from Novartis. These are just some of the few acquisitions the company has undertaken recently.
- The company’s debt-to-equity ratio for the FY 2017-18 was reported to be at 1.05, in contrast to 0.58 in the previous fiscal year. This stark increase in the ratio can be attributed to the different growth and expansion avenues pursued by the company.
- The Indian pharmaceutical market is expected to grow at a rate of 9-12% CAGR by the year 2021. This can be attributed to a host of factors like increase in consumer spending and healthcare insurance. Torrent Pharma is laying the groundwork to meet this growing demand not only in India, but also in international markets.
- From a long-term perspective, it is feasible to purchase the Torrent Pharma stocks. However, it is strongly suggested that you do your own research before investing in the markets.
Torrent Pharmaceuticals Limited is the flagship company of the Torrent Group. It is chiefly known for its presence in the therapeutic segments of cardiovascular, paediatrics, gynaecology, oncology, diabetology, anti-infective, and pain management. Its state-of-the-art manufacturing units, along with a dedicated R&D department has helped Torrent Pharma establish its presence in more than 40 countries.
History of the Company
The pharmaceutical roots of the company can be traced back to the year 1959, when Mr. U.N Mehta commenced the pharma operations. In 1971, Trinity Laboratories was renamed as Torrent Pharmaceuticals Limited and in 1980, the first manufacturing facility in Ahmedabad was set up. Shortly after setting up the manufacturing unit, the company received its first export order to the USSR. Over the course of next couple of decades, the company expanded its manufacturing operations by setting up facilities in different parts of the country. In the same period, Torrent Pharma Limited also entered into international markets supported by various acquisitions.
Management of the Company
Mr. Sudhir Mehta - Chairman Emeritus
Mr. Mehta serves as the Chairman of the Torrent Group. He has played an instrumental role in establishing the group’s presence in the pharmaceutical and power sectors. He has been a part of the group since the early 1970s and the knowledge he acquired over the years helped him with the early success of Torrent Pharmaceuticals. He also played a key role in setting up the company’s first manufacturing facility in Ahmedabad and landing its first export order to Russia. He also led the Torrent Group into the power sector by acquiring the ailing Mahendra Cables and subsequently acquiring The Ahmedabad Electricity Company and The Surat Electricity Company.
Mr. Samir Mehta - Chairman
Mr. Mehta has been a part of the Torrent Group since 1986. He presently serves as the Chairman of Torrent Pharmaceuticals Limited and is also the Vice-Chairman of the Torrent Group. It was under his guidance and leadership that the company expanded its operations into new therapies and geographical regions across the world. He also oversaw the investments in product development, infrastructure, and manufacturing facilities. He has also led several acquisitions in his tenure which established Torrent Pharma as one of the largest and well-respected pharmaceutical companies in India.
Mr. Markand Bhatt - Chief Executive Officer, Torrent Group
Mr. Markand Bhatt serves as the Chief Executive Officer of the Torrent Group. He is a Post Graduate from the IIM, Ahmedabad and has more than 40 years of managerial experience. He has chiefly been involved with the company’s power sector division. In addition to working with the Torrent Group, he has also held key management positions in other groups like Nirma, Raymond, Cama, et cetera.
Torrent Pharmaceuticals Limited Listings in NSE, BSE, and Indices
Torrent Pharma shares are listed on the country’s two major stock exchanges - the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited. The respective codes for the same are as follows:
- BSE Code - 500420
- NSE Code - TORNTPHARM
- ISIN Code - INE685A01028
- Sectors - Pharmaceuticals
As for the stock market indices, the company forms the following indices:
- NIFTY 200
- NIFTY 500
- S&P BSE 200
- S&P BSE AllCap
- S&P BSE Healthcare
- S&P BSE MidCap
- S&P BSE 500
- NIFTY Midcap 150
Torrent Pharmaceuticals Limited
Torrent House, Off. Ashram Road,
Phone number: +91-79-26599000
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