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Today's prices ask more of Torrent Pharma than of Sun Pharma.
At current prices, buyers of Sun Pharma are assuming about 7% growth against 16% 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: Sun Pharma is worth about 2.5 times Torrent Pharma on the stock market.
- Record: On revenue the two have grown at much the same pace: Sun Pharma compounded at about 10% a year (FY2018–FY2026) and Torrent Pharma at about 11% (FY2018–FY2026).
- What to watch: specialty growth at Sun Pharma; india branded growth at Torrent Pharma.
| Sun Pharma | Torrent Pharma | |
|---|---|---|
| Price | ₹1,880 | ₹4,670 |
| Market cap | ₹4.51L Cr | ₹1.77L Cr |
| P/E | 41.1 | 83.6 |
| P/B | 5.40 | 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
From generics to specialty medicines
Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India. It sells generics in the US, emerging markets and Europe, and owns Taro Pharmaceutical, a dermatology-focused generics maker it took fully private in 2024.
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
On revenue the two have grown at much the same pace: Sun Pharma compounded at about 10% a year (FY2018–FY2026) and Torrent Pharma at about 11% (FY2018–FY2026). By revenue, Sun Pharma is about 4.2 times the size of Torrent Pharma. Sun Pharma kept 19.7% 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: Sun Pharma · 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
- Specialty growthThe specialty portfolio is the main reason Sun earns a higher multiple than most Indian pharma companies. Its growth rate drives the valuation.
- The India businessBranded prescriptions in India are steady, cash-rich and grow 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
- US FDA complianceWarning letters or import alerts at a manufacturing site can block US sales from that plant for years.
- Trial and patent riskA failed trial or an early generic challenge can wipe out expected specialty revenue.
- 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 Sun Pharma 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, Sun Pharma trades at 41.1 times earnings and 5.40 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 Sun Pharma and Torrent Pharma?
Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India. 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 Sun Pharma 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 Sun Pharma and Torrent Pharma?
Worked backwards from the share price, Sun Pharma needs about 7% growth and Torrent Pharma about 18% growth, against 16% and 12% in their own records.