Is Torrent Power overvalued or undervalued?

Jun 09 2025 03:35 PM IST
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As of June 5, 2025, Torrent Power is fairly valued with a PE ratio of 23.76, an EV to EBITDA of 14.81, and a PEG ratio of 0.43, although its stock performance has underperformed compared to the Sensex.
As of 5 June 2025, the valuation grade for Torrent Power has moved from expensive to fair. Based on the analysis, the company appears to be fairly valued at this time. Key ratios include a PE ratio of 23.76, an EV to EBITDA of 14.81, and a PEG ratio of 0.43, indicating a potentially attractive growth relative to its price.

In comparison to peers, Torrent Power's PE ratio is higher than NTPC, which has a PE of 13.78 and is rated very attractive, while it is lower than Tata Power Co., which has a PE of 31.57 and is rated attractive. The company's recent stock performance has lagged behind the Sensex, particularly in the year-to-date and one-year periods, where it has returned -4.94% and -5.61%, respectively, compared to the Sensex's 5.61% and 7.60%. Overall, Torrent Power's valuation suggests it is fairly positioned within its industry.
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