Torrent Power Ltd

NSE: TORNTPOWER BSE: 532779

₹1297.60

(0.10%)

Wed, 16 Sept 2026, 06:18 pm

Market Cap (in Cr)65288.26

PE Ratio28.14

Dividend1.54

Utilities

Electric Utilities

24.5K

Torrent Power Analysis

Pros

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%).

Cons

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%).

Pros

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.

Cons

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.

Pros

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).

Cons

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.

Pros

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%.

Cons

The average tenure for the Torrent Power management team is less than 2 years, this suggests a new team.

Pros

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%).

Cons

Torrent Power has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

Pros

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.

Cons

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.