Torrent Power Ltd
NSE: TORNTPOWER BSE: 532779
â‚ą1169
-35 (2.91%)
Sat, 31 Oct 2026, 08:14 pm
Market Cap (in Cr)59022.22
PE Ratio25.35
Dividend1.71
Utilities
Electric Utilities
24.5KTorrent Power Analysis
dividend
- Dividends per share have increased over the past 10 years.
- Dividends paid are well covered by earnings (3.7x coverage).
- Dividends after 3 years are expected to be well covered by earnings (4x coverage).
- Torrent Power's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Torrent Power's dividend is below the markets top 25% of dividend payers in India (3.08%).
future
- Torrent Power's earnings growth is expected to exceed the low risk savings rate of 7.2%.
- Performance (ROE) is expected to be above the current IN Electric Utilities industry average.
- An improvement in Torrent Power's performance (ROE) is expected over the next 3 years.
- Cash flow for Torrent Power is expected to decrease over the next 2 years.
- Torrent Power's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
- Torrent Power's earnings growth is positive but not above the India market average.
- Torrent Power's earnings are expected to decrease over the next year.
- Torrent Power's net income is expected to increase but not above the 50% threshold in 2 years time.
- Torrent Power is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
- Torrent Power's revenue is expected to increase but not above the 50% threshold in 2 years time.
- Torrent Power's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).
- Torrent Power's revenue growth is positive but not above the India market average.
health
- Torrent Power is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Torrent Power is profitable, therefore cash runway is not a concern.
- Torrent Power is profitable, therefore cash runway is not a concern.
- Debt is well covered by operating cash flow (46.6%, greater than 20% of total debt).
- The level of debt compared to net worth has been reduced over the past 5 years (142.4% vs 84.9% today).
- Debt is not covered by short term assets, assets are 0.6x debt.
- Torrent Power's long term commitments exceed its cash and other short term assets.
- Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
- Torrent Power's level of debt (84.9%) compared to net worth is high (greater than 40%).
- High level of physical assets or inventory.
management
- The tenure for the Torrent Power board of directors is about average.
- Jinal's remuneration is lower than average for companies of similar size in India.
- Jinal's compensation has been consistent with company performance over the past year, both up more than 20%.
- The average tenure for the Torrent Power management team is less than 2 years, this suggests a new team.
past
- Torrent Power's 1-year earnings growth exceeds its 5-year average (30.5% vs 17.8%)
- Torrent Power's year on year earnings growth rate has been positive over the past 5 years.
- Torrent Power used its assets more efficiently than the IN Electric Utilities industry average last year based on Return on Assets.
- Torrent Power has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
- Torrent Power's earnings growth has exceeded the IN Electric Utilities industry average in the past year (30.5% vs 16.2%).
- Torrent Power has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
value
- Torrent Power's share price is below the future cash flow value, and at a moderate discount (> 20%).
- TORNTPOWER outperformed the Electric Utilities industry which returned -13.9% over the past year.
- TORNTPOWER outperformed the Market in India which returned -14.5% over the past year.
- NSEI:TORNTPOWER is up 6.6% outperforming the Electric Utilities industry which returned 5.5% over the past month.
- Torrent Power's share price is below the future cash flow value, but not at a substantial discount (< 40%).
- Torrent Power is overvalued based on assets compared to the IN Electric Utilities industry average.
- Torrent Power is poor value based on expected growth next year.
- Torrent Power is overvalued based on earnings compared to the IN Electric Utilities industry average.
- Torrent Power is overvalued based on earnings compared to the India market.
- NSEI:TORNTPOWER is up 6.6% underperforming the market in India which returned 8% over the past month.
