⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TORNTPOWER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | TORNTPOWER | Market Cap | 73,137 Cr. | Current Price | 1,451 ₹ | High / Low | 1,640 ₹ |
| Stock P/E | 22.6 | Book Value | 370 ₹ | Dividend Yield | 1.31 % | ROCE | 16.9 % |
| ROE | 18.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,434 ₹ | DMA 200 | 1,381 ₹ |
| Chg in FII Hold | -0.50 % | Chg in DII Hold | 0.58 % | PAT Qtr | 712 Cr. | PAT Prev Qtr | 746 Cr. |
| RSI | 48.6 | MACD | 3.78 | Volume | 3,18,831 | Avg Vol 1Wk | 5,61,205 |
| Low price | 1,188 ₹ | High price | 1,640 ₹ | PEG Ratio | 0.42 | Debt to equity | 0.38 |
| 52w Index | 58.1 % | Qtr Profit Var | 93.2 % | EPS | 64.2 ₹ | Industry PE | 24.6 |
📊 Financials
- Revenue Growth: Stable, PAT at 712 Cr vs 746 Cr previous quarter
- Profit Margins: EPS at 64.2 ₹, showing strong profitability
- Debt Ratios: Debt-to-equity at 0.38, moderate leverage
- Cash Flows: Healthy, supported by consistent profits
- Return Metrics: ROCE 16.9% and ROE 18.7% indicate solid efficiency
💹 Valuation
- P/E Ratio: 22.6, slightly lower than industry average (24.6), suggesting fair valuation
- P/B Ratio: ~3.9 (Current Price / Book Value), moderate
- PEG Ratio: 0.42, indicating undervaluation relative to growth
- Intrinsic Value: Fairly valued with potential upside
🏢 Business Model & Health
- Business Model: Power generation and distribution, diversified across renewable and conventional energy
- Competitive Advantage: Strong presence in Gujarat and expanding footprint in renewables
- Overall Health: Financially sound with growth visibility, moderate leverage manageable
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 1,400–1,450 ₹ levels (close to DMA 50)
- Long-Term Holding: Suitable for growth investors; dividend yield (1.31%) adds stability
✅ Positive
- Strong EPS of 64.2 ₹ reflects profitability
- ROE at 18.7% shows strong shareholder returns
- DII holdings increased (+0.58%), showing domestic institutional support
⚠️ Limitation
- Quarterly PAT slightly declined (712 Cr vs 746 Cr)
- Debt-to-equity ratio at 0.38, moderate but worth monitoring
- Stock trading close to resistance levels (near 1,640 ₹ high)
📉 Company Negative News
- FII holdings decreased (-0.50%), showing reduced foreign investor confidence
- Technical indicators (RSI 48.6, MACD 3.78) suggest neutral momentum
📈 Company Positive News
- DII holdings increased (+0.58%), showing domestic support
- Quarterly profit variation (93.2%) indicates strong year-on-year growth
🏭 Industry
- Power sector industry P/E: 24.6, slightly higher than TORNTPOWER’s valuation
- Sector demand driven by renewable energy expansion and infrastructure growth
🔎 Conclusion
- TORNTPOWER is financially strong with consistent profitability and manageable debt
- Valuation is fair compared to industry peers, with PEG suggesting growth potential
- Entry near 1,400–1,450 ₹ offers value; suitable for long-term investors focused on power and renewable energy growth