Is Torrent Power overvalued or undervalued?

Aug 11 2025 08:01 AM IST
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As of August 8, 2025, Torrent Power is fairly valued with a PE ratio of 24.38 and an EV to EBITDA of 15.12, but has underperformed the Sensex with a return of -23.56% over the past year, while its peers NTPC and Tata Power Co. are rated attractive with PE ratios of 13.57 and 29.31, respectively.
As of 8 August 2025, Torrent Power's valuation grade has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 24.38, an EV to EBITDA of 15.12, and a ROE of 16.97%.

In comparison to its peers, NTPC is rated attractive with a PE of 13.57, while Tata Power Co. is also attractive with a PE of 29.31. This positions Torrent Power in a competitive landscape where it is neither the cheapest nor the most expensive option. Notably, over the past year, Torrent Power has underperformed the Sensex, with a return of -23.56% compared to the Sensex's 1.23%, indicating potential concerns despite its fair valuation.
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