TORRENT PHARMACEUTICALS L Fair Value
TORNTPHARM · Healthcare · Current price ₹4,954
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹385 | 27% ROE fading to 14% over ~10 yrs, on ₹248 book |
| Relative P/E | ₹2,500 | EPS × 39.1 peer-median P/E |
| Graham floor | ₹597 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹5,284 | Street consensus 12-month target price |
Is TORRENT PHARMACEUTICALS L undervalued?
DocStoX estimates the fair value of TORRENT PHARMACEUTICALS L at ₹1,780 per share, versus the current market price of ₹4,954. That puts the stock about -64.1% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹385), Relative P/E (₹2,500), Graham floor (₹597), Analyst target (₹5,284). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹385 (bear) to ₹1,780 (base) to ₹5,284 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on TORRENT PHARMACEUTICALS L
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.