Torrent Power Limited (TORNTPOWER) AI Stock Analysis

• Market Cap: ₹612.47B
• Dividend Yield: 1.56%
• Average Volume (3M): 84.93K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.24
• Revenue Growth: -2.95%
• EPS Growth: 16.18%
• Country: IN
• Employees: 8,145
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 14.70
• Shares Outstanding: 503,903,530
• 10 Day Avg. Volume: 18,675
• 30 Day Avg. Volume: 84,929
• PEG Ratio: 0.40
• Price to Book (P/B): 4.15
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 154.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,375.00
• Price Target Upside: 13.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ₹1,375.00 ▲(13.13% Upside)

Torrent Power Limited's overall stock score reflects its strong financial performance and moderate valuation, offset by a bearish technical outlook. The company's robust revenue and profit growth, along with efficient cost management, are significant strengths. However, the current technical indicators suggest caution, as the stock is trading below key moving averages. The valuation is reasonable, with a moderate P/E ratio and a modest dividend yield.

Torrent Power Limited Business Overview & Revenue Model

Company Description

Torrent Power Limited, an integrated power utility, engages in the generation, transmission, and distribution of electricity in India. The company owns thermal and renewable power plants with a generation capacity of approximately 4,110 megawatts. It also 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. In addition, the company is involved in the manufacture and supply of power cables. It serves approximately 4 million customers in the states of Gujarat, Maharashtra, Uttar Pradesh, Rajasthan, Madhya Pradesh, and Karnataka, as well as operations in the union territory of Dadra and Nagar Haveli, and Daman and Diu with approximately 0.2 million customers covering 603 square kilometers. The company was incorporated in 2004 and is based in Ahmedabad, India. Torrent Power Limited is a subsidiary of Torrent Investments Private Limited.

How the Company Makes Money

Torrent Power Limited generates revenue primarily through its operations in power generation, transmission, and distribution. The company earns money by selling electricity generated from its thermal power plants and renewable energy sources like solar and wind energy. Additionally, Torrent Power has a significant presence in the electricity distribution sector, where it earns revenue from distributing electricity to residential, commercial, and industrial consumers. The company also benefits from regulatory tariffs set by the government, which play a crucial role in determining revenue from distribution services. Furthermore, Torrent Power may engage in power purchase agreements and partnerships with other entities to optimize its generation and distribution networks, contributing to its overall earnings.

Torrent Power Limited Financial Statement Overview

Summary

Torrent Power Limited exhibits a strong financial position with consistent revenue and profit growth, efficient cost management, and a balanced capital structure. The company's operational strength is reflected in its robust EBIT and EBITDA margins, alongside a commendable ROE. While the cash flow metrics highlight solid operating cash flow generation, there is potential for enhancing free cash flow conversion.

Income Statement

Torrent Power Limited has shown strong revenue growth of 7.29% from the previous year, with a consistent increase in Total Revenue over the years. The Gross Profit Margin stands at 18.84%, indicating efficient cost management. Additionally, the Net Profit Margin improved to 10.24%, showcasing enhanced profitability. The EBIT and EBITDA margins are robust at 13.06% and 19.87%, respectively, signifying healthy operational performance. Overall, the company exhibits solid growth and profitability metrics.

Balance Sheet

The company's Debt-to-Equity Ratio is 0.50, reflecting a balanced capital structure with manageable leverage. Return on Equity (ROE) is at an impressive 16.96%, indicating strong profitability relative to shareholder investment. The Equity Ratio is 48.16%, suggesting a stable financial position with substantial equity backing. Although debt levels are significant, they are well-supported by equity, ensuring financial stability.

Cash Flow

Torrent Power Limited's Free Cash Flow experienced a decrease from the previous year, yet the Operating Cash Flow to Net Income Ratio stands at 1.61, reflecting strong cash generation capabilities relative to earnings. The Free Cash Flow to Net Income Ratio is 0.16, suggesting room for improvement in converting net income into free cash. Overall, the company's cash flow metrics demonstrate robust operating cash flow generation, albeit with some fluctuations in free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	280.38B	291.65B	271.83B	256.94B	142.58B	118.94B
Gross Profit	73.58B	76.80B	39.01B	54.86B	42.41B	42.43B
EBITDA	54.48B	57.95B	47.84B	51.29B	25.26B	36.04B
Net Income	27.48B	29.89B	18.33B	21.17B	4.54B	12.91B
Balance Sheet
Total Assets	0.00	365.73B	333.92B	299.10B	250.23B	235.39B
Cash, Cash Equivalents and Short-Term Investments	11.87B	12.53B	12.91B	10.89B	6.82B	5.34B
Total Debt	0.00	88.40B	116.32B	105.41B	91.43B	78.17B
Total Liabilities	-182.16B	183.58B	207.95B	184.24B	150.44B	133.18B
Stockholders Equity	182.16B	176.15B	120.62B	110.10B	99.43B	101.84B
Cash Flow
Free Cash Flow	0.00	4.75B	6.02B	6.40B	13.58B	16.92B
Operating Cash Flow	0.00	48.05B	42.58B	34.56B	31.67B	29.88B
Investing Cash Flow	0.00	-36.42B	-35.44B	-32.16B	-24.83B	-9.10B
Financing Cash Flow	0.00	-12.16B	-5.51B	-3.41B	-5.02B	-20.61B

Torrent Power Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1215.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TORNTPOWER, the sentiment is Negative. The current price of 1215.45 is below the 20-day moving average (MA) of 1258.29, below the 50-day MA of 1290.94, and below the 200-day MA of 1392.61, indicating a bearish trend. The MACD of -18.86 indicates Positive momentum. The RSI at 33.68 is Neutral, neither overbought nor oversold. The STOCH value of 5.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TORNTPOWER.

Torrent Power Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POWERGRID	72 Outperform	₹2.61T	16.92	16.75%	3.21%	0.40%	-1.73%
TORNTPOWER	67 Neutral	₹612.47B	21.97	―	1.56%	-2.95%	16.18%
CESC	67 Neutral	₹215.27B	15.62	11.40%	2.77%	9.43%	-2.06%
TATAPOWER	66 Neutral	₹1.25T	30.77	11.04%	0.57%	4.23%	9.91%
NHPC	65 Neutral	₹867.99B	28.38	7.58%	2.21%	13.90%	-15.41%
SJVN	64 Neutral	₹357.57B	51.82	5.77%	1.60%	12.40%	-30.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%