Insightful Investment: IIFL Research's Buy Call on Torrent Power, Target ₹ 1280

IIFL Research has buy call on Torrent Power at current market price of Rs 1228.65. The target price of Torrent Power is Rs 1280.

About Torrent Power:

Torrent Power Limited, listed on the National Stock Exchange of India (NSE), is a leading Indian power generation and distribution company. The company has an installed generation capacity of over 3,800 MW, with a diversified portfolio of thermal, renewable, and gas-based power plants. Torrent Power distributes electricity to over 3.5 million customers across the states of Gujarat, Maharashtra, Rajasthan, Dadra & Nagar Haveli, Uttar Pradesh, and Madhya Pradesh. The company is known for its strong financial performance, operational efficiency, and commitment to sustainable development. Torrent Power's market capitalization is approximately ₹50,000 crores.

52 Week Price Trend:

TORNTPOWER's current market price stands at Rs 1228.65, reflecting a moderate decline within its 52-week price range. Its highest traded price during this period was Rs 1236.95, representing a limited upward movement. However, the company's stock has experienced significant volatility, with its lowest recorded price in the past 52 weeks being Rs 484.2, indicating a substantial gap between its current and historical lows.

Stratzy's Analysis:

TORNTPOWER has received a rating of BBB under Stratzy's MOST framework, indicating a medium level of fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend.

Company's Fundamentals:

Torrent Power (NSE: TORNTPOWER) is currently trading at a stock PE (Price-to-Earnings) ratio of 28.96, indicating that investors are willing to pay 28.96 times the company's annual earnings per share. The PB (Price-to-Book) Ratio of 4.53 suggests that the market value of Torrent Power's assets is 4.53 times the company's book value, indicating a premium valuation. Additionally, Torrent Power offers a dividend yield of 1.16%, implying that investors can receive a return of 1.16% annually based on the current stock price through dividend payments.

Fundamental and Technical information provided in this blog were last updated on 16 Mar, 2024

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