Torrent Power Ltd. (TORNTPOWER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

CESC

Torrent Power

JSW Energy

Tata Power Co.

Adani Energy Sol

Reliance Power

NHPC Ltd

NTPC Green Ene.

NLC India

Nava

SJVN

Why is Torrent Power Ltd. ?

Healthy long term growth as Net Sales has grown by an annual rate of 18.69%

Positive results in Sep 25

OPERATING CF(Y) Highest at Rs 4,804.91 Cr
OPERATING PROFIT TO NET SALES(Q) Highest at 19.12%
PAT(Q) At Rs 723.71 cr has Grown at 50.5%

With ROCE of 13.5, it has a Fair valuation with a 2.7 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -22.59%, its profits have risen by 33.3% ; the PEG ratio of the company is 0.8

High Institutional Holdings at 39.32%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.07% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.59% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Torrent Power should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Torrent Power for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Torrent Power

-22.77%

-0.72

31.35%

Sensex

4.7%

0.40

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.69%

EBIT Growth (5y)

12.41%

EBIT to Interest (avg)

3.79

Debt to EBITDA (avg)

2.23

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

0.99

Tax Ratio

5.10%

Dividend Payout Ratio

32.04%

Pledged Shares

Institutional Holding

39.32%

ROCE (avg)

14.44%

ROE (avg)

16.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.47

EV to EBIT

20.05

EV to EBITDA

14.12

EV to Capital Employed

2.70

EV to Sales

2.57

PEG Ratio

0.81

Dividend Yield

1.08%

ROCE (Latest)

13.48%

ROE (Latest)

15.90%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CF(Y)

Highest at Rs 4,804.91 Cr

OPERATING PROFIT TO NET SALES(Q)

Highest at 19.12%

PAT(Q)

At Rs 723.71 cr has Grown at 50.5%

PBDIT(Q)

Highest at Rs 1,505.84 cr.

PBT LESS OI(Q)

Highest at Rs 901.19 cr.

-6What is not working for the Company

ROCE(HY)

Lowest at 14.21%

DPR(Y)

Lowest at 32.04%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 304.12 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.35 times

Loading Valuation Snapshot...

Here's what is working for Torrent Power

Operating Cash Flow - Annually

Highest at Rs 4,804.91 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 19.12% and Grown

each quarter in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 901.19 cr has Grown at 59.79%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 723.71 cr has Grown at 50.5%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 1,505.84 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 901.19 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Torrent Power

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 304.12 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 8.35 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Lowest at 32.04%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)