Torrent Power Ltd., incorporated in the year 2004, is a Mid Cap company (having a market cap of Rs 18342.74 Crore) operating in Power sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 2990.11 Crore, down -5.56 % from last quarter Total Income of Rs 3166.10 Crore and down 4.02 % from last year same quarter Total Income of Rs 3115.48 Crore. Company reported net profit after tax of Rs 321.73 Crore in latest quarter.
Investment Rationale
The brokerage maintains HOLD rating on TPW, but increases target price to Rs347 (earlier: Rs334), incorporating the two Gujarat-based solar projects totaling 250MW, but await further clarity on TPW’s capex plan and target IRR for the aggressively bid UT discom. Increasing gas prices are a medium-term concern. However, improving demand in DF areas and upcoming capex are the positives.
Promoter/FII Holdings
Promoters held 53.6 per cent stake in the company as of Dec 30, 2020, while FIIs held 9.1 per cent, DIIs 18 per cent and public and others 19.3 per cent.
