NSEI:TORNTPOWER

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Executive Summary

Torrent Power Limited, an integrated power utility, engages in the generation, transmission, and distribution of electricity in the states of Gujarat, Maharashtra, Uttar Pradesh, and Karnataka, India.


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Torrent Power's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TORNTPOWER has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

TORNTPOWER

0.8%

IN Electric Utilities

4.0%

IN Market


1 Year Return

12.2%

TORNTPOWER

-10.4%

IN Electric Utilities

-5.3%

IN Market

Return vs Industry: TORNTPOWER exceeded the Indian Electric Utilities industry which returned -7.5% over the past year.

Return vs Market: TORNTPOWER exceeded the Indian Market which returned -5.5% over the past year.


Shareholder returns

TORNTPOWERIndustryMarket
7 Day5.3%0.8%4.0%
30 Day-2.6%7.3%6.6%
90 Day15.0%16.9%22.9%
1 Year16.2%12.2%-7.1%-10.4%-3.3%-5.3%
3 Year93.3%79.3%-6.4%-15.1%2.3%-2.6%
5 Year157.3%131.5%24.5%8.1%27.7%17.8%

Price Volatility Vs. Market

How volatile is Torrent Power's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Torrent Power undervalued compared to its fair value and its price relative to the market?

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TORNTPOWER (₹335.5) is trading below our estimate of fair value (₹564.49)

Significantly Below Fair Value: TORNTPOWER is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TORNTPOWER is poor value based on its PE Ratio (13.7x) compared to the Electric Utilities industry average (10x).

PE vs Market: TORNTPOWER is poor value based on its PE Ratio (13.7x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: TORNTPOWER is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: TORNTPOWER is overvalued based on its PB Ratio (1.8x) compared to the IN Electric Utilities industry average (0.8x).


Next Steps

Future Growth

How is Torrent Power forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TORNTPOWER's forecast earnings growth (7.4% per year) is above the savings rate (7.2%).

Earnings vs Market: TORNTPOWER's earnings (7.4% per year) are forecast to grow slower than the Indian market (18.8% per year).

High Growth Earnings: TORNTPOWER's earnings are forecast to grow, but not significantly.

Revenue vs Market: TORNTPOWER's revenue (3.8% per year) is forecast to grow slower than the Indian market (7.2% per year).

High Growth Revenue: TORNTPOWER's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TORNTPOWER's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Torrent Power performed over the past 5 years?

17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TORNTPOWER has a large one-off loss of ₹10.0B impacting its March 31 2020 financial results.

Growing Profit Margin: TORNTPOWER's current net profit margins (8.6%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: TORNTPOWER's earnings have grown by 17.8% per year over the past 5 years.

Accelerating Growth: TORNTPOWER's earnings growth over the past year (30.5%) exceeds its 5-year average (17.8% per year).

Earnings vs Industry: TORNTPOWER earnings growth over the past year (30.5%) exceeded the Electric Utilities industry 10.2%.


Return on Equity

High ROE: TORNTPOWER's Return on Equity (12.8%) is considered low.


Next Steps

Financial Health

How is Torrent Power's financial position?


Financial Position Analysis

Short Term Liabilities: TORNTPOWER's short term assets (₹48.2B) exceed its short term liabilities (₹47.1B).

Long Term Liabilities: TORNTPOWER's short term assets (₹48.2B) do not cover its long term liabilities (₹97.3B).


Debt to Equity History and Analysis

Debt Level: TORNTPOWER's debt to equity ratio (84.9%) is considered high.

Reducing Debt: TORNTPOWER's debt to equity ratio has reduced from 142.4% to 84.9% over the past 5 years.

Debt Coverage: TORNTPOWER's debt is well covered by operating cash flow (46.6%).

Interest Coverage: TORNTPOWER's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Torrent Power current dividend yield, its reliability and sustainability?

1.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TORNTPOWER's dividend (1.97%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).

High Dividend: TORNTPOWER's dividend (1.97%) is low compared to the top 25% of dividend payers in the Indian market (2.78%).


Stability and Growth of Payments

Stable Dividend: TORNTPOWER's dividend payments have been volatile in the past 10 years.

Growing Dividend: TORNTPOWER's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27%), TORNTPOWER's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TORNTPOWER's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Jinal Mehta (37yo)

2.25yrs

Tenure

₹75,942,000

Compensation

Mr. Jinal Mehta serves as the Chief Executive Officer and Director of Torrent Energy Ltd. Mr. Mehta serves as a Whole-Time Director of Torrent Power Ltd., since October 19, 2011 and also its Managing Direc ...


CEO Compensation Analysis

Compensation vs Market: Jinal's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD641.03K).

Compensation vs Earnings: Jinal's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jinal Mehta
MD & Whole-Time Director2.25yrs₹75.94m0.0017% 2.6m
Sanjay Dalal
Chief Financial Officer2.17yrs₹23.95mno data
Rahul Shah
Company Secretary & Compliance Officer1.17yrsno datano data
Samir Shah
Executive Officer1.17yrs₹8.68mno data
Deepak Dalal
Executive Officerno datano datano data
Amar Singh
Vice Presidentno data₹9.50mno data
Asis Ghosh
Vice Presidentno data₹16.58mno data
Harnish Patel
Vice Presidentno data₹6.96mno data
Jayesh Desai
Executive Directorno data₹10.84mno data
L. Lalwani
Executive Directorno data₹49.25mno data

1.7yrs

Average Tenure

61.5yo

Average Age

Experienced Management: TORNTPOWER's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jinal Mehta
MD & Whole-Time Director2.25yrs₹75.94m0.0017% 2.6m
Pankaj Patel
Independent Non-Executive Director13.83yrs₹2.70mno data
Samir Mehta
Chairman2.25yrs₹100.00m0.0013% 2.0m
Keki Mistry
Independent Non-Executive Director10.42yrs₹1.90mno data
Sudhir Mehta
Chairman Emeritus2.25yrs₹100.04m0.0014% 2.3m
Samir Barua
Independent Non-Executive Director12.5yrs₹3.20mno data
Bhavna Doshi
Independent Director4.92yrs₹2.80m0.00040% 638.3k
Dharmishta Raval
Independent Director4.75yrs₹2.40mno data
Sunaina Tomar
Non-Executive Non-Independent Director0.42yrno datano data

4.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: TORNTPOWER's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Torrent Power Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Torrent Power Limited
  • Ticker: TORNTPOWER
  • Exchange: NSEI
  • Founded: 2004
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₹159.565b
  • Shares outstanding: 480.62m
  • Website: https://www.torrentpower.com

Location

  • Torrent Power Limited
  • Samanvay, 600
  • Tapovan, Ambavadi
  • Ahmedabad
  • Gujarat
  • 380015
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532779BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2006
TORNTPOWERNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2006

Biography

Torrent Power Limited, an integrated power utility, engages in the generation, transmission, and distribution of electricity in the states of Gujarat, Maharashtra, Uttar Pradesh, and Karnataka, India. It owns coal, gas, and renewable power plants with a generating capacity of 3,600 MW. The company also transmits and distributes electricity to approximately three million customers in the cities of Ahmedabad, Gandhinagar, Surat, Bhiwandi, Agra, and Dahej SEZ. In addition, it is also involved in the manufacture and supply of power cables. Torrent Power Limited was incorporated in 2004 and is based in Ahmedabad, India. Torrent Power Limited is a subsidiary of Torrent Private Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 12:39
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.