I had done a similar exercise for Ajanta Pharma using the formula: (1 - g/ROCE)/(WACC - g). In my opinion, Torrent Pharma has significant potential of re-rating as ROCE recovers and actual growth beats market implied rate.
Results are displayed in table below. The market is currently implying a growth rate of 10.6% (PE of 13.8)
Note: ROCE has ranged historically from 25-30% but was a low 19.4% in FY15 (source: moneycontrol)
WACC picked up from but increased based on own judgement (paper mentions 11.6%): http://shodhganga.inflibnet.ac.in/bitstream/10603/20482/11/11_%20chapter%205.pdf
Disclosure: Invested
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