Torrent Power Limited is an Indian company which is engaged in the business of power generation, transmission, and distribution.
As of August 29, 2018, the market capitalisation of Torrent Power Limited was close to Rs.12,500 crore.
Company’s Wealth and Recent Performance
? For the quarter ended on June 30, 2018, Torrent Power Limited reported its total income from operations to be at Rs.3,580.42 crore. In comparison to the Q1 FY 2017-18, this figure improved by a little over Rs.500 crore. This increase in the revenues came on the account of increase in finance and depreciation costs.
? However, this increase in the revenues was offset by a sizeable increase in the expenses for the period. Y-o-y, the expenses increased by roughly Rs.500 crore to stand at Rs.3,292.7 crore at the end of Q1 FY19.
? Consequently, net profit after tax for the period was stated to be at Rs.227.3 crore - an improvement of a little over 10% with respect to the same period last year. The company’s earnings per share also improved marginally over the year - from Rs.4.22 to Rs.4.70.
Torrent Power Limited Stock Trends in 2018
? On January 2, 2018, the share price of Torrent Power Limited was Rs.285.25 on the National Stock Exchange. Like the stocks of many companies, this particular scrip rose in the first half of the month to reach its 52-week high at Rs.307.35.
? This remarkable rise was followed by a sharp nosedive wherein, the shares lost close to 20% in little over a week. By the end of the first week of February, the shares were varying at levels close to Rs.240. However, over the remainder of the month, the prices recovered steadily to reach their previous levels at Rs.260 - Rs.280. The closing price of the scrip on February 28 was Rs.264.65 on the NSE.
? In the month of March, the Torrent Power Limited shares were predominantly bearish. The stocks lost their previous gains to turbulent market conditions. Over the course of the month, the shares lost more than 20% to drop into the Rs.220 region. The scrip ended the month at Rs.229.25.
? In April, the Torrent Power Limited share price rose marginally to cross the Rs.240 mark. In May, however, the prices dipped further to descend into the Rs.210 territory. The investors were taken by surprise in the final week of the month when the stock price surged on the back of updates on dividend and financial results. The shares ended the month at Rs.262.30.
? In the first half of June, the shares remained above the Rs.250 mark. In the second half, the shares lost close to 10% to retreat back to their previous levels at Rs.220. For the entire month of July, the Torrent Power shares traded hands at levels varying from Rs.220 - Rs.240. The scrip appeared to be quite bullish through the course of August and towards the end of the month, the shares were trading at levels above Rs.250.
Torrent Power Limited Stock Trends in 2016 and 2017
? At the start of 2016, the Torrent Power Limited shares were being traded at levels close to Rs.180. Unlike many stocks which went down in the first quarter of the calendar year, the shares of this company managed to gain a little over 15%. On March 31, 2016, the closing share price was Rs.231.90. In the same period, the company announced an interim dividend of 45%.
? Through the course of April and the first half of May, the share price of Torrent Power varied between Rs.225 - Rs.240. After the announcement of financial results in the late May, the stocks lost more than 16% owing to a disappointing performance by the company. The shares went down to be traded at levels above Rs.180.
? In the months of June and July, the shares remained below the Rs.180 mark. The scrip didn’t make any steady gains in this period. Things improved marginally in August when the share price crossed the Rs.180 level, although the gains made here were not that significant.
? A similar trend was observed for the remainder of the year. The stock price of Torrent Power Limited mostly varied from Rs.165 - Rs.185. The closing price of the scrip on December 30, 2016, was Rs.179 on the NSE.
? 2017 was a good year for the Torrent Power Limited shareholders. The scrip commenced the year trading at levels close to Rs.176. By the end of January, the shares had ascended into the Rs.200 territory. Through most of February and March, the shares were traded at levels varying from Rs.200 - Rs.210.
? At the end of March, the stock price of Torrent Power Limited started to rise again and this time, the shares gained a little over 10% to touch the Rs.230 mark. The shares remained buoyant at levels above Rs.210 up until late May, which is when the prices slumped heavily. This bear run continued till the end of June and by that point, the shares had lost a little over 20% since the start of April. A final dividend of 22% was also announced in this period.
? At the start of July 2017, the shares were trading at levels close to Rs.175. Things didn’t change considerably until August, when the stock price rose dramatically to ascend back into the Rs.200 region. For most of September, the shares remained at levels above Rs.215.
? The share price rose sharply in October once again and this time, the scrip gained more than 25% to enter the Rs.280 region. However, the shares failed to stabilise at those levels and for the remainder of the years, the scrip was quite volatile. The closing price at the end of December 2017 was Rs.283.25.
Should you invest in Torrent Power Limited?
? Torrent Power Limited is an Indian power company that generates, transmits, and distributes power. It primarily covers the areas of Ahmedabad, Agra, Surat, Gandhinagar, and Bhiwandi. It is also in the business of manufacturing and supplying power cables.
? For the quarter ended on June 30, 2018, Torrent Power Limited reported its revenue from operations to be at Rs.3,528 crore - an increase of Rs.500 crore y-o-y. As for its profit for the period, it reported an increase of roughly Rs.20 crore y-o-y to Rs.227.32 crore. However, it is important to mention that the revenues and profits have varied q-o-q, thus making it tricky to spot any trends.
? Considering the performance of the stock, in 2016, the scrip was quite bearish while in 2017, the shares gained a little over 60% over the year at Rs.283.25. In 2018, however, the stocks exhibited bearish trends once again, although they managed to stay buoyant well above the Rs.200 mark.
? Considering its power portfolio, the company is in the process of expanding its renewable business. At the end of the FY 2017-18, the company won the rights to develop two wind projects with respective capacities of 499.8 MW and 146 MW. Its total renewable power generation capacity (operation and under-construction) has crossed the mark of 1,500 MW.
? If we are to compare the performance of the company with that of its peers, Torrent Power Limited is among the top players in terms of sales turnover and net profit. The power sector has an important role to play in the development of the economy of the country. However, from an investment perspective, these companies may not be that feasible owing to regulatory, tariffs, legacy, and most importantly, a large amount of debt.
? Before investing in this company, it is suggested that you research thoroughly and consult a financial advisor.
Torrent Power Limited, a part of the Torrent Group, is one of the leading companies in the Indian power sector. It is an integrated power company which is mainly engaged in power generation, transmission, and distribution. The company is also in the business of manufacturing and supplying power cables. Its power portfolio comprises coal, gas, and renewable energy plants, with its aggregate power generation capacity standing at 3,600 MW. It provides power to more than 3 million people in the areas of Ahmedabad, Gandhinagar, Surat, Bhiwandi, and Agra.
History of the Company
The roots of the company can be traced to the year 1989, when the Torrent Group entered the power sector by acquiring Mahindra Electricals. After laying the groundwork for subsequent expansion into the sector, Torrent acquired the management control of the Surat Electricity Company. Subsequently, the company also acquired the management control of the Ahmedabad Electric Company Limited. In 2004, Torrent brought its group of power companies under a single, unified brand - Torrent Power. In the same year, the company listed its equity shares on the stock exchanges. Over the years, it forayed into transmission and distribution operations.
Management of the Company
Mr. Sudhir Mehta - Chairman Emeritus
Mr. Sudhir Mehta is the Chairman Emeritus of Torrent Pharmaceuticals Limited and Torrent Power Limited. He also serves as the Chairman of the Torrent Group. He served as the Executive Chairman of Torrent Power Limited from October 2006 and March 2018, and was a driving force behind the growth of Torrent Pharmaceuticals Limited. In addition to this present positions, he also serves as a Director of Surat Electricity Company Limited, Torrel Private Limited, and Torrel Cosmetics Private Limited. He also served as a Non-Executive Independent Director and Additional Director of Arvind Mills Limited. He finished his graduation in Science from Gujarat University.
Mr. Samir Barua - Independent Non-Executive Director
Mr. Samir Barua is currently the Independent Non-Executive Director of Torrent Power Limited. In addition to this, he serves as an Advisor to the National Stock Exchange, Mumbai Stock Exchange, Reserve Bank of India, and FICCI. He has also been an Additional Independent Director at IOT Infrastructure and Energy Services Limited since September 2010 and a Director at Axis Bank Limited since July 2011. He has published more than 200 papers/articles and has authored various books and case studies in Management. He holds a Master’s degree from the IIT, Kanpur, in Industrial Engineering and Operations Research. He followed this with a Doctorate in Management from the IIM, Ahmedabad, where he presently serves as a Professor.
Mrs. Bhavna G. Doshi - Independent Director
Mrs. Bhavna G. Doshi presently serves as an Independent Director at Torrent Power Limited and she has held this post since August 2015. She has experience of more than three decades in the fields of taxation, corporate and regulatory matters, accounting, restructuring, and joint ventures. In addition to Torrent Power Limited, she is associated with other reputed companies like Sun Pharma Advanced Research Company Limited, Peninsula Land Limited, Everest Industries Limited, and GRUH Finance Limited. She is a Member of the Managing Committee of Indian Merchants’ Chambers and Council of the Institute of Chartered Accountant of India.
Torrent Power Limited Stock Listings in NSE, BSE, and Indices
The equity shares of Torrent Power Limited are available to the general public for trading. The shares are listed on the country’s two prominent stock exchanges - the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective codes for the same are as follows:
? NSE Code: TORNTPOWER
? BSE Code: 532779
? ISIN: INE813H01021
? Sector: Power - Generation/Distribution
Coming to the stock market indices, the company comprises the following:
? Nifty 200
? Nifty 500
? Nifty Full Midcap 100
? Nifty Infrastructure
? S&P BSE 200
? S&P BSE 500
? S&P BSE AllCap
? S&P BSE LargeMidCap
? S&P BSE Utilities
? S&P BSE Power
? S&P BSE MidCap
Ahmedabad - 380015
Contact number: 079-26628000
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