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Torrent Power Ltd

NSE: TORNTPOWER BSE: 532779

1512.60

(2.18%)

Sun, 24 May 2026, 05:00 pm

Torrent Power Analysis

dividend

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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%).
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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%).

future

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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.
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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.

health

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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).
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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.

management

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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%.
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Cons

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

past

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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%).
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Cons

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

value

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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.
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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.

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