Torrent Pharma share price jumps 6% to hit a record high— Is it a stock to buy, sell or hold after Q3 results?

Torrent Pharma's share price jumped as much as 6% in the morning trade on Monday, February 16, to hit a record high of ₹4,322.80, defying lacklustre market sentiment. Torrent Pharmaceuticals shares opened at ₹4,154.95 against their previous close of ₹4,074.05 and jumped over 6% to an all-time high. Around 10:05 am, the pharma stock was up 5.64% to ₹4,304, while the Sensex was up 0.20% to 82,773.

Why is Torrent Pharmaceuticals' share price rising today?

Torrent Pharma shares are rising following the pharma company's healthy December quarter results.

On Friday, February 13, Torrent Pharmaceuticals reported a 26.24% year-on-year (YoY) rise in its consolidated net profit at ₹635 crore for Q3FY26. Total revenue from operations for the quarter rose 17.6% YoY to ₹3,303 crore.

Operational EBITDA before exceptional items rose by 19% YoY to ₹1,088 crore, while operational EBITDA margin for the quarter stood at 33%.

Should you buy Torrent Pharmaceuticals shares?

Torrent Pharma's healthy Q3 scorecard was cheered by most brokerage firms, with several of them revising their target prices for the stock.

Brokerage firm JM Financial maintained a buy call on the stock but raised the 12-month target price to ₹4,743 from ₹4,255 earlier, citing that the company remains confident of growing its India business slightly ahead of the market and expects strong double-digit growth in the US.

JM Financial projects Torrent to deliver a 14%, 16%, and 26% revenue, EBITDA, and PAT CAGR over FY25– 28, with 110 basis points margin expansion.

"With the company currently having taken up a 49% stake in JB Chemicals and NCLT filing expected shortly, synergy benefits from the deal are expected to reflect in the earnings from FY27. At a 25 times EV/EBITDA multiple on the combined entity's FY28 EBITDA, we arrive at the target price of ₹4,743, and maintain our buy rating on the stock," said JM Financial.

Brokerage firm ICICI Securities has maintained a 'hold' call on the stock but raised the target price to ₹4,150 from ₹3,530, based on 22 times FY28E EV/EBITDA.

ICICI highlighted that Torrent’s Q3FY26 performance was supported by steady traction in India, Brazil, and the US, offset by weakness in Germany on a constant-currency basis.

The brokerage firm estimates Torrent Pharma's revenue, EBITDA, and PAT CAGRs of 23%, 23.7%, and 19.2% over FY25–28E, respectively, with a slight 50 basis points expansion in margin over FY25–28E.

"The stock currently trades at valuations of 60.1 times FY27E and 46.8 times FY28E earnings and EV/EBITDA multiples of 24.9 times FY27E and 21.8 times FY28E. We value the stock on an EV/EBITDA basis, considering a significant amortisation cost, which is a non-cash charge," said ICICI Securities.

While the stock appears to be a good bet for the long term, technical experts suggest waiting for some correction before buying, as the stock has gained nearly 20% over the last six months.

According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the stock has given a strong breakout above the ₹4,125 resistance zone and is currently trading near ₹4,280.

Patel highlighted that the breakout is supported by positive momentum indicators — MACD remains above the zero line, DMI (+DI above –DI) signals a strengthening trend, and RSI is comfortably placed in the bullish zone, indicating sustained buying interest.

"Considering the sharp move post-breakout, traders are advised to trail stop loss to ₹4,200 on a closing basis to protect profits. For fresh entries, it is prudent to wait for a pullback toward the ₹4,100– ₹4,125 zone, which may act as a retest of the breakout area and offer a better risk-reward opportunity," said Patel.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.