AHMEDABAD: Riding high on bullish investor sentiment aided by strong financial performance, Torrent Group’s market capitalization has breached Rs 50,000 crore mark to reach a record high levels. With their share prices soaring, the combined m-cap of Torrent Pharmaceuticals Ltd and Torrent Power Ltd — the two listed companies of Torrent Group — currently stands at Rs 51,199 crore.

Separately, Torrent Pharma’s market cap was Rs 35,745 crore as on Friday, when its share price scaled a lifetime high of Rs 2,119.20 before ending the day at Rs 2,112.30. Torrent Power’s stock, too, touched a yearly high of Rs 332.50 on Thursday. The share ended the week at Rs 321.55 with m-cap of Rs 15,454 crore.

“Both the companies are very well managed with strong financials. The next generation that has joined the company is working in a well-defined manner,” said Nilesh Kotak, a city-based stock analyst.

Torrent Pharma has benefited from its continued focus on India, Brazil and Germany markets and synergies with the acquired business of Unichem. “The company’s solid India franchise, robust earnings growth and superior return profile justifies its premium over the industry peers,” said Devarsh Vakil, head advisory, PCG, HDFC Securities .

According to him, Torrent Pharma’s business in India is expected to post a compounded annual growth rate (CAGR) of 11% over the next three years. The Brazil business is seen growing at 10% CAGR during the same period.

“Torrent Power is focused more on distribution of electricity rather than on its generation. Its margins are increasing as the company is currently getting power at a lower cost. The recently announced general budget’s focus on power distribution augurs well for the company,” said Kotak.

The stock analysts opine that Torrent Power’s distribution business is doing well on all operational parameters and the outlook for the company’s gas-based power generation capacity is positive. The company remains very well capitalized, has low debt-equity ratio and consequently there has been an improvement in the credit rating of the company in a very difficult external environment.

