Insightful Investment: IIFL Research's Buy Call on Torrent Power, Target Rs 1275
IIFL Research has buy call on Torrent Power at current market price of Rs 1235.4. The target price of Torrent Power is Rs 1275.
About Torrent Power:
Torrent Power Limited, a part of the Torrent Group, is a leading Indian integrated power utility, headquartered in Ahmedabad, Gujarat. The company was founded in 1997 and is engaged in power generation, transmission, and distribution. Torrent Power has a presence in multiple states across India with a total installed generation capacity of over 4,000 MW. It distributes power to over 3.8 million customers in Gujarat, Maharashtra, Uttar Pradesh, and Chhattisgarh. The company also has renewable energy projects with an installed capacity of over 1,400 MW. Torrent Power is committed to providing reliable and sustainable power solutions to its customers and is consistently ranked among the top power utilities in India.
52 Week Price Trend:
TORNTPOWER's Closing Market Price (CMP) stands at Rs 1235.4, close to its 52-week high of Rs 1236.95. This indicates that the stock has been performing well and is currently trading near its all-time high. However, it's important to note that the 52-week low price of Rs 484.2 signifies a significant range of potential fluctuations in the stock's value. Investors should carefully consider the stock's financial performance, market dynamics, and future prospects before making investment decisions.
Stratzy's Analysis:
Stratzy's MOST framework assigns a BBB rating to TORNTPOWER, indicating medium fundamental risks. This rating is based on the company's Management, Outlook, Safety, and Trend pillars, each of which is scored individually. The BBB rating suggests that TORNTPOWER has a balanced risk profile with strengths and weaknesses in different areas, and investors should exercise caution before investing.
Company's Fundamentals:
TORNTPOWER's financial ratios provide insights into its valuation and profitability. The Stock PE (price-to-earnings) ratio of 28.96 indicates that the company's stock is priced 28.96 times its annual earnings per share, suggesting it is moderately valued relative to its earnings. The PB Ratio (price-to-book) of 4.53 implies that the company's stock is trading 4.53 times above its book value per share, indicating a potential overvaluation based on its asset holdings. On the other hand, the Dividend Yield of 1.16% represents the annual dividend payment as a percentage of the current stock price, offering a modest return on investment through dividend income.
Fundamental and Technical information provided in this blog were last updated on 09 Mar, 2024
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