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TORN

Torrent PowerNSEI:TORNTPOWER Stock Report

Market Cap

₹247.7b

7D

2.3%

1Y

70.3%

Updated

15 Oct, 2021

Data

Company Financials +
TORNTPOWER fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends5/6

TORNTPOWER Overview

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 in India.

Torrent Power Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Torrent Power
Historical stock prices
Current Share Price₹515.40
52 Week High₹293.00
52 Week Low₹544.90
Beta0.33
1 Month Change5.42%
3 Month Change7.26%
1 Year Change70.30%
3 Year Change118.90%
5 Year Change194.51%
Change since IPO625.92%

Recent News & Updates

Shareholder Returns

TORNTPOWERIN Electric UtilitiesIN Market
7D2.3%6.5%2.3%
1Y70.3%168.8%68.3%

Return vs Industry: TORNTPOWER underperformed the Indian Electric Utilities industry which returned 173.5% over the past year.

Return vs Market: TORNTPOWER matched the Indian Market which returned 69.5% over the past year.

Price Volatility

Is TORNTPOWER's price volatile compared to industry and market?
TORNTPOWER volatility
TORNTPOWER Beta0.33
Industry Beta0.83
Market Beta1

Stable Share Price: TORNTPOWER is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TORNTPOWER's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20047,803Jinal Mehtahttps://www.torrentpower.com

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 in India. The company owns thermal and renewable power plants with a generating capacity of approximately 3,879 MW. It distributes electricity in the cities of Ahmedabad, Gandhinagar, Surat, and Dahej SEZ covering the total area of approximately 425 square kilometers, as well as Dholera SIR covering an area of 920 square kilometers; and operates as a franchisee for electricity distribution in the cities of Bhiwandi, Agra and Shil-Mumbra-Kalwa covering an area of approximately 1,007 square kilometers.

Torrent Power Fundamentals Summary

How do Torrent Power's earnings and revenue compare to its market cap?
TORNTPOWER fundamental statistics
Market Cap₹247.71b
Earnings (TTM)₹11.25b
Revenue (TTM)₹122.65b

22.0x

P/E Ratio

2.0x

P/S Ratio

Is TORNTPOWER overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TORNTPOWER income statement (TTM)
Revenue₹122.65b
Cost of Revenue₹78.23b
Gross Profit₹44.42b
Expenses₹33.17b
Earnings₹11.25b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)23.40
Gross Margin36.22%
Net Profit Margin9.17%
Debt/Equity Ratio76.6%

How did TORNTPOWER perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

47%

Payout Ratio

Valuation

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

22.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TORNTPOWER (₹515.4) is trading above our estimate of fair value (₹422.34)

Significantly Below Fair Value: TORNTPOWER is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TORNTPOWER is good value based on its PE Ratio (22x) compared to the Indian Electric Utilities industry average (23.2x).

PE vs Market: TORNTPOWER is good value based on its PE Ratio (22x) compared to the Indian market (22.1x).


Price to Earnings Growth Ratio

PEG Ratio: TORNTPOWER is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: TORNTPOWER is overvalued based on its PB Ratio (2.4x) compared to the IN Electric Utilities industry average (1.5x).


Future Growth

How is Torrent Power forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TORNTPOWER's forecast earnings growth (9.7% per year) is above the savings rate (6.7%).

Earnings vs Market: TORNTPOWER's earnings (9.7% per year) are forecast to grow slower than the Indian market (19.2% per year).

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

Revenue vs Market: TORNTPOWER's revenue (5.6% per year) is forecast to grow slower than the Indian market (12.9% per year).

High Growth Revenue: TORNTPOWER's revenue (5.6% 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 (13.1%).


Past Performance

How has Torrent Power performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TORNTPOWER has high quality earnings.

Growing Profit Margin: TORNTPOWER's current net profit margins (9.2%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: TORNTPOWER's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: TORNTPOWER's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TORNTPOWER had negative earnings growth (-11.5%) over the past year, making it difficult to compare to the Electric Utilities industry average (10%).


Return on Equity

High ROE: TORNTPOWER's Return on Equity (11.1%) is considered low.


Financial Health

How is Torrent Power's financial position?


Financial Position Analysis

Short Term Liabilities: TORNTPOWER's short term assets (₹46.4B) do not cover its short term liabilities (₹48.1B).

Long Term Liabilities: TORNTPOWER's short term assets (₹46.4B) do not cover its long term liabilities (₹85.1B).


Debt to Equity History and Analysis

Debt Level: TORNTPOWER's debt to equity ratio (76.6%) is considered high.

Reducing Debt: TORNTPOWER's debt to equity ratio has reduced from 113.7% to 76.6% over the past 5 years.

Debt Coverage: TORNTPOWER's debt is well covered by operating cash flow (38.2%).

Interest Coverage: TORNTPOWER's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

2.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TORNTPOWER's dividend (2.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.33%).

High Dividend: TORNTPOWER's dividend (2.13%) is in the top 25% of dividend payers in the Indian market (1.35%)


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 (47%), 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 (29.9% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Jinal Mehta (38 yo)

3.5yrs

Tenure

₹130,000,000

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 ($USD1.73M) is above average for companies of similar size in the Indian market ($USD578.33K).

Compensation vs Earnings: Jinal's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TORNTPOWER's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: TORNTPOWER's board of directors are considered experienced (3.5 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 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: ₹247.710b
  • Shares outstanding: 480.62m
  • Website: https://www.torrentpower.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 12:07
End of Day Share Price2021/10/14 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.