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Today's prices ask more of Torrent Pharma than of Cipla.
At current prices, buyers of Cipla are assuming about 2% growth against 7% in its own record; for Torrent Pharma it is 18% against 12%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: Torrent Pharma is worth about 1.6 times Cipla on the stock market.
- Record: Torrent Pharma has grown revenue faster: Cipla compounded at about 8% a year (FY2018–FY2026) and Torrent Pharma at about 11% (FY2018–FY2026).
- What to watch: complex us generics at Cipla; india branded growth at Torrent Pharma.
| Cipla | Torrent Pharma | |
|---|---|---|
| Price | ₹1,392 | ₹4,670 |
| Market cap | ₹1.12L Cr | ₹1.77L Cr |
| P/E | 38.8 | 83.6 |
| P/B | 3.27 | 21.15 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
Ninety years of affordable medicine
Cipla was founded in 1935 by Khwaja Abdul Hamied and became known worldwide for low-cost HIV medicines in the early 2000s. Today it is one of India's largest pharmaceutical companies, with strong positions in India, South Africa and the US.
Branded medicines for long-term conditions
Torrent Pharmaceuticals, part of Ahmedabad's Torrent group, earns most of its profit from branded prescription medicines in India, especially for chronic conditions such as heart disease, diabetes and gastric disorders. It also sells in Brazil, Germany and the US.
02The records side by side
Torrent Pharma has grown revenue faster: Cipla compounded at about 8% a year (FY2018–FY2026) and Torrent Pharma at about 11% (FY2018–FY2026). By revenue, Cipla is about 2.0 times the size of Torrent Pharma. Cipla kept 13.7% of revenue as net profit in FY2026; Torrent Pharma kept 15.3% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Cipla · Torrent Pharma.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Complex US genericsInhalers and other hard-to-make products face less competition than simple pills.
- India branded businessSteady, cash-rich and growing with the domestic market.
- India branded growthChronic therapies grow steadily and earn high margins.
- AcquisitionsDeals add brands, but only create value if the price is earned back.
05What could go wrong
- FDA complianceInspection problems at key plants have delayed launches before.
- US price erosionGeneric prices fall as competitors enter.
- Debt from dealsLarge acquisitions add borrowing.
- Price controlsIndia's drug-price rules cap some products.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Cipla or Torrent Pharma better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Cipla trades at 38.8 times earnings and 3.27 times book value, and Torrent Pharma at 83.6 times earnings and 21.15 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Cipla and Torrent Pharma?
Cipla was founded in 1935 by Khwaja Abdul Hamied and became known worldwide for low-cost HIV medicines in the early 2000s. Torrent Pharmaceuticals, part of Ahmedabad's Torrent group, earns most of its profit from branded prescription medicines in India, especially for chronic conditions such as heart disease, diabetes and gastric disorders.
Are Cipla and Torrent Pharma valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Cipla and Torrent Pharma?
Worked backwards from the share price, Cipla needs about 2% growth and Torrent Pharma about 18% growth, against 7% and 12% in their own records.