TORRENT PHARMACEUTICALS L Valuation

TORNTPHARM · Healthcare · Current price ₹4,954

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DocStoX fair value
₹1,780
low confidence
Current price
₹4,954
Upside
-64.1%
P/E ratio
77.5x
P/B ratio
18.7x
Verdict
Avoid
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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.

Valuation multiples

TORRENT PHARMACEUTICALS L trades at a P/E of 77.5x and a P/B of 18.7x, with a dividend yield of 0.8%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

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.