52-week high alert: This power company surged over 18 per cent as it receives huge projects worth Rs 27,000 crore!
The stock gave is up by 55 per cent in just 1 year and over 100 per cent in 3 years.
On Wednesday, shares of Torrent Power Ltd surged 18.61 per cent to make a new 52-week high of Rs 725.50 per share from its previous closing of Rs 611.65. At the closing bell shares of the company ended the day in green, up 13.70 per cent to Rs 695.45 per share with a spurt in volume by more than 4 times on BSE.
The sudden rise in the stock price is due to a Memorandum of Understanding (MoU) with the Government of Maharashtra and Torrent Power Ltd for the development of three pumped storage hydro projects of 5,700 MW capacity in the State of Maharashtra. The projects would entail an investment of about Rs 27,000 crore and would provide employment to approx. 13,500 people during the construction period. Torrent intends to execute these projects over a period of 5 years.
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Torrent Power Ltd is a leading integrated power utility company in India with a presence across the generation, transmission and distribution of power.
Talking about the financials, this power company has a market cap of Rs 33,425 crore. The company reported positive numbers in its Quarterly Results and annual results. The company has maintained a healthy dividend payout of 61.2 per cent with a dividend yield of 1.68 per cent. The stock has a PE of 15.60x and an ROE of 21 per cent.
The stock gave is up by 55 per cent in just 1 year and over 100 per cent in 3 years. Investors should keep an eye on this multibagger stock.