TORNTPOWER - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.5

Here's a deep dive into Torrent Power (TORNTPOWER) using the details you provided

📊 Core Financials

Profitability

ROE: 19.0%, ROCE: 16.0% — strong returns on equity and capital employed, above industry average

EPS: ₹59.3 — impressive earnings per share

PAT Growth (QoQ): 146% — profit has more than doubled this quarter, signaling robust performance

Revenue & Margins

While revenue growth isn't explicitly mentioned, the jump in PAT and healthy margins hint at operational efficiency and cost control

Debt Ratios & Cash Flow

Debt-to-Equity: 0.50 — moderate leverage, well managed for a utility company

Positive cash flow trends implied through rising profits and controlled debt

📈 Valuation Metrics

Metric Value Insights

Stock P/E 23.6 Slightly above industry average (17.9), may imply premium pricing

P/B Ratio ~3.78 Reasonable given ROE, but not deeply undervalued

PEG Ratio 0.49 Undervalued — growth-adjusted valuation appears attractive

Dividend Yield 1.43% Moderate, adds steady income potential

🏢 Business Model & Competitive Edge

Sector: Power generation and distribution — stable, often recession-resistant

Edge: Strong presence in Gujarat and Maharashtra, mix of renewable and conventional energy, improving regulatory environment

Growth Drivers: Government push for renewables, urban expansion, private power purchase agreements

💡 Technical Overview

RSI: 31.6 — approaching oversold territory

MACD: -25.7 — bearish momentum but may signal nearing bottom

Trading Volume: Slightly below average — watch for reversal signs

DMA Analysis: Current price is below both 50-DMA and 200-DMA — trend is weak but may offer entry points soon

📍 Entry Zone & Long-Term Guidance

Suggested Entry: ₹1,250–₹1,280 — near recent support and RSI confirms discount

Target Hold Range: Long-term investors may look toward ₹1,800+ over 12–18 months

Investment View: Stable earnings, modest debt, strong growth metrics. PEG ratio makes this a value play with upside potential. Ideal for patient holders.

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