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Company Profile

First established in 1959 under the name Trinity Laboratories, it subsequently changed its name to Torrent Pharmaceuticals Limited in the year 1971. Torrent Pharma is a worldwide pharmaceutical firm based in Ahmedabad. Torrent Pharmaceuticals has more than approx. 2,000 product registrations worldwide and conducts business in more than 40 countries. Cardiovascular, central nervous system, gastrointestinal, diabetic, anti-infective, and pain management are among the therapeutic domains in which Torrent Pharma operates. 

Pharma Industry in India

•    India’s pharmaceutical sector is expected to grow from its predicted USD 50 billion in FY 2023–2024 to USD 130 billion by 2030 with domestic consumption valued at USD 23.5 billion and export valued at USD 26.5 billion. India accounts for 20% of worldwide pharmaceutical exports, making it the world’s largest supplier of generic medications by volume. With over 60% of all vaccines produced worldwide, it is also the world’s largest supplier of vaccinations by volume. The US, UK, EU, and Canada are among the regulated markets to which Indian pharmaceutical products are exported. According to data published by Pharmexcil (an authorized agency of Indian government for promotion of pharma exports), India’s earnings from pharmaceutical exports in fiscal year 2022–2023 was USD 25.3 billion. In terms of the cash worth of its exports of pharmaceuticals and medicines, India came in third place worldwide.

•  As of 2023, the Indian pharmaceutical industry is ranked thirteenth in the world in terms of value and third in terms of volume. India holds a substantial share of the global market and is considered the pharmacy of the world. India’s international standing is aided by innovatively created generic drugs and active pharmaceutical ingredients (API). The Indian pharmaceutical business supplies 25% of all prescription drug in the UK, 40% of the US generic drug market, and more than half of the global demand for various immunizations. As of 2023, India has more than 670 USFDA-approved manufacturing facilities, more than any other non-US country. During FY18 to FY23, the Indian pharmaceutical industry logged a compounded annual growth rate (CAGR) of 6-8%, primarily driven by an 8% increase in exports and a 6% rise in the domestic market.

•  Big local pharmaceutical businesses have kept expanding, taking the lead in a number of treatments and market niches in India and building a solid foundation for exports outside. Significant biologics competence has also been established by Indian players. Although they are still in their infancy in India, biologic portfolios are being developed with future in mind.

• International companies are now present in most of the pharmaceutical industry categories in India as a result of their continued large investments in the country. Companies have also begun to invest in growing their presence in tier II cities and rural areas to enhance access to healthcare for a sizable section of the Indian population. Cheap costs of manufacture, minimal R&D costs, skilled workforce, exceptional and first-rate national laboratories that concentrate on creating economical technologies and procedures are expanding pharmaceutical industry trade balance. With trustworthy and reasonably priced supplier for generic drugs, India is an excellent location for clinical research given the diversity of the population.

Company Perspective and Review

•  Torrent delivers consistent growth (7–15% bottom line), strong domestic execution, margin expansion, and a growing product pipeline. With their disciplined R&D & M&A strategy positions it is well placed for long termvalue creation. The stock currently trades near ₹3100–3500, aligning with solid fundamentals. Torrent Pharma showcased steady, all‑round financial performance over the years along with dividend declaration, underpinned by robust revenue growth, led by domestic chronic therapies, margin improvement and disciplined cost management.