The analyst noted the stock is consolidating in a symmetrical triangle, with a breakout yet to come.
Torrent Pharma shares fell on Thursday, even as the company announced that it will acquire a 26% equity stake in Torrent Urja 27 Private, a special purpose vehicle set up for a captive hybrid solar and wind power project in Gujarat.
The investment, worth ₹7.92 crore, will be made through a share subscription and shareholders’ agreement signed on Sept. 10. Torrent Urja, currently a wholly owned subsidiary of Torrent Green Energy, has been incorporated to build the project, which is expected to be completed in 18–20 months.
Torrent Pharma said the move will increase the share of renewable energy in its operations while ensuring compliance with India’s electricity laws. The company will subscribe to 79.19 lakh Class A equity shares of Torrent Urja at ₹10 each.
Green Energy Bet
SEBI-registered analyst Mayank Singh Chandel said Torrent Pharma’s investment in captive renewable energy is a strategic step toward lowering electricity costs.
He likened the move to buying a house rather than paying rent, as it takes money up front, but over time it cuts out monthly bills and leaves you better off. Similarly, the investment may temporarily reduce cash flow, but cheaper power should ultimately boost profits.
Regulatory Boost
Chandel also highlighted that Torrent’s Vizag plant recently cleared a U.S. Food and Drug Administration inspection with zero observations. He described this as “acing the toughest exam in the world,” saying it clears the path for smoother approvals and stronger U.S. sales.
Technical View
On the charts, Chandel said the stock is moving inside a symmetrical triangle pattern and could soon break out in either direction.
He advised waiting for the breakout before fresh entry, but noted that the overall trend remains positive with the stock trading above its 50, 100, and 200-day exponential moving averages.
Long-Term Play
Chandel said Torrent Pharma is playing a long game, trading near-term cash outflows for long-term benefits. Lower power bills, stronger profitability, and regulatory trust will support the company’s growth.
“Not just making medicines but making smarter moves for the future,” he added.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.
Torrent Pharma’s stock has risen 4.7% so far in 2025.
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