Torrent Group’s market cap touches $10 billion mark | Ahmedabad News

Ahmedabad: Taking advantage of the steady growth in share prices of its publicly traded companies, the market capitalization of the Ahmedabad-based Torrent Group has hit the $ 10 billion mark.
The combined market capitalization of Torrent Pharmaceuticals Limited and Torrent Power Limited, the two publicly traded group companies, stood at Rs 74,823 crore on Tuesday, which translates to $ 10.07 billion (considering the value of the rupee against the dollar at 74.24).
Separately, Torrent Pharma's m-cap rose to Rs 52,501 crore (around $ 7 billion) and its shares hit an all-time high of Rs 3,123.60 in intraday trading on Tuesday before closing at Rs 3,102.50.
With its shares remaining flat at Rs 464.45, Torrent Power's m-cap stood at Rs 22,322 crore (roughly $ 3 billion) on Tuesday. The company's shares had hit an all-time high of Rs 508.85 on June 9, 2021. Its share price has risen 46% in this calendar year so far.
All Torrent Group businesses have demonstrated a history of profitable growth with the help of strong corporate governance. These companies are more prepared for attractive growth in the future, analysts said.
“Torrent Pharma has now become the eighth largest pharmaceutical company in India. Their portfolio is well diversified in India, Brazil, the United States and Germany, with India accounting for 53% of sales, ”said Parth Parekh, fundamental research analyst at Prudent Corporate Advisory.
Stating that the company's revenue and earnings have grown at a compound annual growth rate (CAGR) of 14% and 17% respectively over the last 10 years, Parekh added: “Return on equity has averaged a strong 26% during this time. The cumulative free cash flows generated in the last ten years have exceeded Rs 7.5 billion and the company has been reinvesting many of these free cash flows for inorganic growth. "
Torrent Power, on the other hand, enjoys a strong presence in power generation, transmission and distribution. “The company has one of the lowest transmission and distribution (T&D) losses in the country. The successful tendering of the power distribution license at Dadra & Nagar Haveli and Daman & Diu, as well as the upcoming 815 MW renewable energy capacities will aid growth in the future, ”Parekh said.
The company has a strong balance sheet with one of the lowest debt to equity and net debt to EBITDA ratios in the entire power sector.