Torrent Power
Market Cap
₹159.6b
Last Updated
2020/07/07 12:39 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
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
| TORNTPOWER | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.3% | 0.8% | 4.0% |
| 30 Day | -2.6% | 7.3% | 6.6% |
| 90 Day | 15.0% | 16.9% | 22.9% |
| 1 Year | 16.2%12.2% | -7.1%-10.4% | -3.3%-5.3% |
| 3 Year | 93.3%79.3% | -6.4%-15.1% | 2.3%-2.6% |
| 5 Year | 157.3%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
1 week ago | Simply Wall St
Torrent Power's (NSE:TORNTPOWER) Earnings Are Growing But Is There More To The Story?4 weeks ago | Simply Wall St
With 31% Earnings Growth, Did Torrent Power Limited (NSE:TORNTPOWER) Outperform The Industry?1 month ago | Simply Wall St
Is Torrent Power Limited's (NSE:TORNTPOWER) High P/E Ratio A Problem For Investors?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Whole-Time Director | 2.25yrs | ₹75.94m | 0.0017% ₹2.6m | |
| Chief Financial Officer | 2.17yrs | ₹23.95m | no data | |
| Company Secretary & Compliance Officer | 1.17yrs | no data | no data | |
| Executive Officer | 1.17yrs | ₹8.68m | no data | |
| Executive Officer | no data | no data | no data | |
| Vice President | no data | ₹9.50m | no data | |
| Vice President | no data | ₹16.58m | no data | |
| Vice President | no data | ₹6.96m | no data | |
| Executive Director | no data | ₹10.84m | no data | |
| Executive Director | no data | ₹49.25m | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Whole-Time Director | 2.25yrs | ₹75.94m | 0.0017% ₹2.6m | |
| Independent Non-Executive Director | 13.83yrs | ₹2.70m | no data | |
| Chairman | 2.25yrs | ₹100.00m | 0.0013% ₹2.0m | |
| Independent Non-Executive Director | 10.42yrs | ₹1.90m | no data | |
| Chairman Emeritus | 2.25yrs | ₹100.04m | 0.0014% ₹2.3m | |
| Independent Non-Executive Director | 12.5yrs | ₹3.20m | no data | |
| Independent Director | 4.92yrs | ₹2.80m | 0.00040% ₹638.3k | |
| Independent Director | 4.75yrs | ₹2.40m | no data | |
| Non-Executive Non-Independent Director | 0.42yr | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532779 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Nov 2006 |
| TORNTPOWER | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Nov 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/07 12:39 |
| End of Day Share Price | 2020/07/07 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
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.