Business conglomerate Torrent Group has crossed Rs 1 lakh crore market capitalisation, with Torrent Pharmaceuticals and Torrent Power shares settling for Rs 2,010 and Rs 678.20 respectively at the National Stock Exchange (NSE) in intra-day trading on Monday.
Torrent’s pharma wing now has a market capitalisation of over Rs 68,000 crore, while Torrent Power sits at about Rs 32,600 crore, taking the combined market valuation of the Group to Rs 1,00,600 crore.
The Group’s valuation hit Rs 50,000 crore in February 2020. This shows 2x growth in market capitalisation in the past three years – driven by robust financial performance, sustained growth trajectory and expansions in business and new geographies, market insiders believed.
The two group companies have outperformed the broader market in the past three years as the benchmark index BSE Sensex has gained from 39,872 points in February 2020 to 66,527 points (up 66 per cent) on Monday, while the 50-stock NSE Nifty50 index has moved from 11,707 points in February 2020 to 19,753 points (up 68 per cent) now.
The company’s e-vehicle push and recent expansions in the pharma sector is believed to have fuelled the rally in stocks.
Last week, Torrent Power announced its foray into electric vehicle charging infrastructure space by launching four such stations in Ahmedabad. It now plans to open a few more in Surat and other cities.
Torrent Power’s total generation capacities have increased by over 26 per cent in the past three years from 3,879 Megawatts (MW) (combined for gas, coal and renewable assets) as of March 2020 to 4,160 MW till March 2023.
The company also provides electricity to over 4 million customers across its five licensed distribution territories and three franchised distribution territories in Gujarat, Maharashtra, Uttar Pradesh and the Union Territory of Dadra & Nagar Haveli and Daman & Diu.
It is one of the largest companies in the Country’s power sector with presence across the entire power value chain of generation, transmission, and distribution.
A significant development fuelling investor sentiment for Torrent Pharma is the acquisition of Curatio Healthcare in 2022, strengthening its presence in the fast-growing dermatology segment.
The company has also acquired four brands from Dr Reddy’s Laboratories besides a recent announcement of a strategic alliance with Boehringer Ingelheim (BI India) for the co-marketing of products.
Torrent Pharma’s revenues have grown steadily from Rs 7,939 crore in 2020 to Rs 9,620 crore in March 2023.
It gets about 52 per cent of its revenues from domestic operations, while it also has a presence across 40 countries. The company ranked no.6 in the IPM rankings, has set its focus on building US business over the next 3-5 years and moving towards complex and value-added generics. It has a strong pipeline of 2,000+ product registrations across 40 countries.