LIC-Backed Multibagger Power Generation Stock Jumps 7.9 Per Cent From Intraday Low With 2.5 Times Spurt In Volume
The stock gave multibagger returns of 200 per cent 2 years whereas the BSE Sensex Index is up by 27 per cent.
On Monday, shares of Torrent Power Ltd gained 7.90 per cent to Rs 1,619.40 per share from an intraday low of Rs 1,500.35 per share. The stock’s 52-week high is Rs 2,037.35 per share and its 52-week low is Rs 869.35 per share. The shares of the company saw a spurt in volume by more than 2.50 times.
Torrent Power Limited has announced its financial results for the second quarter of the fiscal year 2024-25, showcasing a strong performance across key metrics. The company's revenue from operations for the quarter increased by 3 per cent year-over-year to Rs 7,176 crore, driven by robust growth in the distribution business. This positive trend continued in the first half of the fiscal year, with a 13 per cent year-over-year increase in revenue to Rs 16,210 crore.
The company's EBITDA for the quarter remained steady at Rs 1,332 crore, while the first-half EBITDA surged by 26 per cent to Rs 3,266 crore. This growth was primarily attributed to the increased contribution from the renewable energy segment and the distribution business. However, the company's total comprehensive income for the quarter declined by 7 per cent to Rs 492 crore, primarily due to lower contributions from thermal generation and renewable businesses. Despite this, the first-half total comprehensive income witnessed a significant 39 per cent year-over-year increase to Rs 1,484 crore.
Torrent Power remains optimistic about its future growth prospects, particularly in the renewable energy sector. The recent acquisition of a 2,000 MW Pump Storage Hydro Power project from MSEDCL underscores the company's commitment to clean energy and its strategic focus on diversifying its energy portfolio. With a strong financial performance and a clear growth strategy, Torrent Power is well-positioned to capitalize on emerging opportunities in the Indian power sector.
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About Torrent Power: Torrent Power, the Rs 27,183 crore integrated power utility of the Rs 41,000 crore Torrent Group, is one of the largest companies in the country’s power sector with presence across the entire power value chain – generation, transmission and distribution.
Generation: The Company has an aggregate installed generation capacity of 4,580 MWp comprising 2,730 MW of gas-based capacity, 1,488 MWp of renewable capacity and 362 MW of coal-based capacity. Further, Renewable projects of 2,979 MWp are under development. Total generation capacity, including projects under advanced stages of development, is 7,559 MWp
Distribution: The Company distributes nearly 30 billion units to over 4.13 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat, Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD); Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.
Torrent Power is widely considered to be the leading power distributor in India and in its licensed areas in Gujarat has the distinction of having the lowest AT&C losses and best reliability indices in the country.
The company is Mid-Cap with a market cap of over Rs 75,000 crore and has been maintaining a healthy dividend payout of 65.4 per cent. As of September 2024, the Life Insurance Corporation of India (LIC) owns a 3.21 per cent stake and the Governor of Gujarat owns a 1.47 per cent stake in the company. The stock gave multibagger returns of 200 per cent 2 years whereas the BSE Sensex Index is up by 27 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.