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TORNTPOWER: Medium-Term Expansion Plans Will Support Balanced Risk Reward Ahead

Rooftop Solar Adoption And Heavy CapEx Will Threaten Long-Term Prospects

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TORNTPOWER
AnalystLowTarget
Not Invested
Published 21 Jun 2025

Update shared on 15 Dec 2025

Fair value Increased 15%
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AnalystLowTarget's Fair Value
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1Y
-21.1%
7D
1.8%

Analysts have raised their price target on Torrent Power from ₹1,050 to ₹1,210, citing stronger expected revenue growth despite slightly higher discount rates and moderating profit margins, which are still seen as compatible with a higher forward P/E multiple.

What's in the News

  • Torrent Power has scheduled an Analyst and Investor Day, where management is expected to outline medium term growth plans and capital allocation priorities. (Company event)
  • The board will meet on November 11, 2025 to consider unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025. (Board meeting agenda)
  • Torrent Power was among the bidders for Statkraft's 150 MW Himachal Pradesh hydro power project on the Tidong tributary of the Sutlej River. This highlights its interest in expanding hydro and renewable capacity, even though JSW Neo Energy has emerged as the frontrunner. (M&A market reports)

Valuation Changes

  • Fair Value: Raised from ₹1,050 to ₹1,210, reflecting a moderate upward revision to the target price.
  • Discount Rate: Increased slightly from 12.55 percent to 12.76 percent, implying a modestly higher risk or return requirement.
  • Revenue Growth: Upgraded meaningfully from about 5.5 percent to about 8.0 percent, indicating a stronger growth outlook.
  • Net Profit Margin: Reduced from about 9.25 percent to about 7.80 percent, signaling a moderate compression in expected profitability.
  • Future P/E: Lifted from roughly 27.4x to 34.2x, suggesting a higher valuation multiple on forward earnings.

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