TORNTPOWER - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.2
| Stock Code | TORNTPOWER | Market Cap | 86,788 Cr. | Current Price | 1,724 ₹ | High / Low | 1,824 ₹ |
| Stock P/E | 26.8 | Book Value | 370 ₹ | Dividend Yield | 1.10 % | ROCE | 16.9 % |
| ROE | 18.7 % | Face Value | 10.0 ₹ | DMA 50 | 1,522 ₹ | DMA 200 | 1,417 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.08 % | PAT Qtr | 712 Cr. | PAT Prev Qtr | 746 Cr. |
| RSI | 66.4 | MACD | 81.7 | Volume | 4,31,086 | Avg Vol 1Wk | 7,41,369 |
| Low price | 1,188 ₹ | High price | 1,824 ₹ | PEG Ratio | 0.50 | Debt to equity | 0.38 |
| 52w Index | 84.3 % | Qtr Profit Var | 93.2 % | EPS | 64.2 ₹ | Industry PE | 30.8 |
Analysis: Torrent Power demonstrates strong fundamentals with solid ROE/ROCE and low debt-to-equity ratio. The PEG ratio of 0.50 suggests the stock is undervalued relative to its growth potential. Technical indicators show bullish momentum (RSI 66.4, MACD positive), though volumes are slightly below average, indicating cautious participation. Overall, it is a good candidate for swing trading.
Optimal Entry Price: Around 1,520–1,540 ₹ (near 50 DMA support).
Exit Strategy if Holding: Consider exiting near 1,800–1,820 ₹ resistance zone unless momentum continues strongly.
✅ Positive
- High ROE (18.7%) and ROCE (16.9%).
- Low debt-to-equity ratio (0.38), showing financial stability.
- PEG ratio of 0.50 indicates attractive valuation relative to growth.
- Quarterly profit variation of 93.2% highlights strong earnings momentum.
⚠️ Limitation
- P/E ratio (26.8) is slightly below industry average (30.8), but still not cheap.
- Sequential decline in PAT (746 Cr. to 712 Cr.).
- Trading volumes below 1-week average, limiting breakout strength.
📉 Company Negative News
- Recent quarter showed a slight dip in profits.
- Stock nearing overbought zone with RSI at 66.4.
📈 Company Positive News
- EPS at 64.2 ₹ reflects strong earnings quality.
- Institutional interest rising with both FII and DII holdings up (+0.08%).
- Strong long-term growth outlook supported by infrastructure expansion.
🏭 Industry
- Power and utilities sector with steady demand.
- Industry PE at 30.8 shows Torrent Power trades at a slight discount.
- Sector benefits from rising energy needs and government focus on infrastructure.
📝 Conclusion
Torrent Power is a strong swing trade candidate with attractive valuation metrics and bullish technical indicators. Entry near 1,520–1,540 ₹ offers a favorable setup, with an exit target around 1,800–1,820 ₹. While short-term profit dip and volume weakness warrant caution, fundamentals and sector tailwinds support upside potential.