Torrent Power Limited

NSEI:TORNTPOWER Stock Report

Market Cap: ₹760.5b

Torrent Power Valuation

Is TORNTPOWER undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TORNTPOWER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TORNTPOWER (₹1582.35) is trading above our estimate of fair value (₹467.43)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TORNTPOWER?

Key metric: As TORNTPOWER is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TORNTPOWER. This is calculated by dividing TORNTPOWER's market cap by their current earnings.
What is TORNTPOWER's PE Ratio?
PE Ratio33.9x
Earnings₹22.43b
Market Cap₹760.53b

Price to Earnings Ratio vs Peers

How does TORNTPOWER's PE Ratio compare to its peers?

The above table shows the PE ratio for TORNTPOWER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average61.9x
ADANIENSOL Adani Energy Solutions
155.9x51.3%₹1.0t
500400 Tata Power
34.8x16.4%₹1.3t
SJVN SJVN
40.7x20.4%₹415.9b
CESC CESC
16x13.4%₹225.3b
TORNTPOWER Torrent Power
33.9x13.4%₹760.5b

Price-To-Earnings vs Peers: TORNTPOWER is good value based on its Price-To-Earnings Ratio (33.9x) compared to the peer average (61.9x).

Price to Earnings Ratio vs Industry

How does TORNTPOWER's PE Ratio compare vs other companies in the Asian Electric Utilities Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TORNTPOWER 33.9xIndustry Avg. 16.3xNo. of Companies15PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TORNTPOWER is expensive based on its Price-To-Earnings Ratio (33.9x) compared to the Asian Electric Utilities industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is TORNTPOWER's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TORNTPOWER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.9x
Fair PE Ratio24.7x

Price-To-Earnings vs Fair Ratio: TORNTPOWER is expensive based on its Price-To-Earnings Ratio (33.9x) compared to the estimated Fair Price-To-Earnings Ratio (24.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TORNTPOWER forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,582.35
₹1,487.10
-6.0%
24.0%₹2,026.00₹880.00n/a10
Nov ’25₹1,825.45
₹1,537.50
-15.8%
26.3%₹2,268.00₹880.00n/a10
Oct ’25₹1,861.70
₹1,547.73
-16.9%
25.0%₹2,268.00₹880.00n/a11
Sep ’25₹1,743.50
₹1,330.00
-23.7%
23.3%₹1,825.00₹880.00n/a11
Aug ’25₹1,827.30
₹1,330.00
-27.2%
23.3%₹1,825.00₹880.00n/a11
Jul ’25₹1,456.45
₹1,218.27
-16.4%
22.2%₹1,650.00₹750.00n/a11
Jun ’25₹1,501.80
₹1,173.70
-21.8%
20.7%₹1,560.00₹750.00n/a10
May ’25₹1,501.10
₹996.20
-33.6%
19.6%₹1,300.00₹720.00n/a10
Apr ’25₹1,422.50
₹996.20
-30.0%
19.6%₹1,300.00₹720.00n/a10
Mar ’25₹1,116.25
₹986.70
-11.6%
19.8%₹1,300.00₹720.00n/a10
Feb ’25₹1,051.70
₹829.30
-21.1%
24.2%₹1,300.00₹602.00n/a10
Jan ’25₹942.45
₹763.70
-19.0%
26.3%₹1,300.00₹579.00n/a10
Dec ’24₹952.45
₹698.00
-26.7%
14.1%₹850.00₹579.00n/a8
Nov ’24₹718.85
₹646.38
-10.1%
14.1%₹805.00₹570.00₹1,825.458
Oct ’24₹738.50
₹606.63
-17.9%
13.4%₹805.00₹530.00₹1,861.708
Sep ’24₹665.20
₹581.00
-12.7%
5.4%₹640.00₹530.00₹1,743.508
Aug ’24₹677.80
₹562.50
-17.0%
5.4%₹600.00₹510.00₹1,827.308
Jul ’24₹615.25
₹553.75
-10.0%
6.5%₹600.00₹503.00₹1,456.458
Jun ’24₹561.55
₹543.33
-3.2%
6.4%₹600.00₹503.00₹1,501.809
May ’24₹551.40
₹521.50
-5.4%
9.7%₹580.00₹412.00₹1,501.108
Apr ’24₹510.40
₹537.14
+5.2%
5.7%₹580.00₹500.00₹1,422.507
Mar ’24₹506.55
₹503.86
-0.5%
9.3%₹575.00₹412.00₹1,116.257
Feb ’24₹439.40
₹507.67
+15.5%
10.1%₹580.00₹412.00₹1,051.706
Jan ’24₹492.35
₹509.43
+3.5%
9.4%₹580.00₹412.00₹942.457
Dec ’23₹543.00
₹494.00
-9.0%
13.3%₹580.00₹382.00₹952.457
Nov ’23₹518.55
₹492.71
-5.0%
13.7%₹595.00₹382.00₹718.857

Analyst Forecast: Target price is lower than the current share price.

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