⚠ 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 | 65,410 Cr. | Current Price | 1,298 ₹ | High / Low | 1,640 ₹ |
| Stock P/E | 22.6 | Book Value | 370 ₹ | Dividend Yield | 1.46 % | ROCE | 16.9 % |
| ROE | 18.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,320 ₹ | DMA 200 | 1,345 ₹ |
| Chg in FII Hold | -0.50 % | Chg in DII Hold | 0.58 % | PAT Qtr | 746 Cr. | PAT Prev Qtr | 685 Cr. |
| RSI | 45.7 | MACD | 4.42 | Volume | 3,58,405 | Avg Vol 1Wk | 4,43,066 |
| Low price | 1,188 ₹ | High price | 1,640 ₹ | PEG Ratio | 0.42 | Debt to equity | 0.38 |
| 52w Index | 24.2 % | Qtr Profit Var | 60.8 % | EPS | 57.3 ₹ | Industry PE | 22.1 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved from 685 Cr. to 746 Cr., showing solid growth momentum.
- Profit Margins: EPS at 57.3 ₹ reflects healthy profitability.
- Debt Ratios: Debt-to-equity at 0.38, moderate leverage manageable for a utility company.
- Cash Flows: Likely positive given consistent earnings and dividend payouts.
- Return Metrics: ROCE at 16.9% and ROE at 18.7% highlight strong capital efficiency.
💹 Valuation Indicators
- P/E Ratio: 22.6, in line with industry average (22.1), suggesting fair valuation.
- P/B Ratio: ~3.51 (Current Price / Book Value), reasonable for the sector.
- PEG Ratio: 0.42, indicates attractive valuation relative to growth prospects.
- Intrinsic Value: Current price (1,298 ₹) trades slightly below DMA 50 (1,320 ₹) and DMA 200 (1,345 ₹), offering potential value entry.
🏢 Business Model & Competitive Advantage
- TORNTPOWER operates in power generation and distribution, a regulated and essential sector.
- Competitive advantage lies in integrated operations, efficient management, and strong regional presence.
- Consistent profitability and moderate leverage provide resilience against cyclical risks.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 1,250–1,300 ₹, close to current levels and below DMA averages.
- Long-Term Holding: Suitable for investors seeking stable returns and dividends. Strong fundamentals support holding, with growth potential in power demand and infrastructure expansion.
Positive
- Quarterly PAT growth of 60.8% indicates strong operational performance.
- ROCE (16.9%) and ROE (18.7%) highlight efficient capital use.
- DII holdings increased (+0.58%), reflecting domestic institutional confidence.
Limitation
- FII holdings decreased (-0.50%), showing reduced foreign investor interest.
- Stock trading slightly below DMA 50 and DMA 200, reflecting near-term weakness.
- Dividend yield at 1.46% is modest compared to other utility peers.
Company Negative News
- Decline in foreign institutional participation.
- Technical indicators show RSI at 45.7, reflecting neutral momentum.
Company Positive News
- Quarterly PAT improved from 685 Cr. to 746 Cr.
- MACD positive at 4.42, indicating bullish technical signal.
Industry
- Power sector trades at P/E of 22.1, in line with TORNTPOWER’s valuation.
- Sector benefits from rising electricity demand, infrastructure growth, and renewable integration.
Conclusion
- TORNTPOWER is fundamentally strong with consistent profitability, efficient capital use, and moderate leverage.
- Valuation is fair compared to industry, with entry opportunity near current levels.
- Best suited for long-term investors seeking stable returns and exposure to India’s growing power sector.
I can also prepare a utility sector peer comparison HTML table (Torrent Power vs NTPC, Power Grid, Adani Energy) to highlight relative valuation and efficiency metrics if you’d like.