Rs 1540,00,00,000 orders: LIC & Governor of Gujarat-backed multibagger power stock bags new solar PV projects from Maharashtra State Electricity Distribution Company Ltd
The stock gave multibagger returns of 120 per cent 1 year whereas BSE Sensex Index is up by 23 per cent.
Torrent Power Ltd, a major Indian power company, has been awarded a project to build a 306 MW solar power plant in Nasik District, Maharashtra. This project is part of the Mukhya Mantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0) scheme, which aims to bring stable daytime electricity to agricultural consumers by setting up decentralized solar power plants. The orders are worth Rs 1540,00,00,000.
The project will be built across 48 locations in Nasik and is expected to be completed within 18 months. Torrent will acquire the project entirely and will receive financial aid from the central government under the PM-KUSUM scheme. The power generated from this plant will be purchased by Maharashtra State Electricity Distribution Co. Limited (MSEDCL) for the next 25 years at a fixed rate of Rs 3.10 per kWh.
This project is a significant step for Torrent as it expands its renewable energy portfolio. With this addition, Torrent's renewable energy capacity under construction reaches 1.7 GW, which is expected to increase its total renewable energy capacity to 3 GW in the next 18-24 months. This win aligns with Torrent's commitment to growing its sustainable energy generation and contributing to India's ambitious renewable energy targets.
Earlier, in a major commitment to Gujarat's clean energy future, Torrent Power signed agreements to invest Rs 47,350 crore (USD 5.7 billion) in solar and hybrid power projects, green hydrogen production, a solar park, and distribution network upgrades, aiming to create jobs and accelerate the state's economic growth.
Torrent Power Ltd is a leading integrated power utility company in India with a presence across the generation, transmission and distribution of power. Its operations are spread across the states of Gujarat, Maharashtra, Uttar Pradesh and Karnataka.
Talking about the financials, the company is Mid-Cap with a market cap of over Rs 50,000 crore and has been maintaining a healthy dividend payout of 65.1 per cent. In its Quarterly Results, the company reported net sales of Rs 6,366 crore and a net profit of Rs 374 crore in Q2FY24 and in its nine-month results, the company reported net sales of Rs 20,655 crore and a net profit of Rs 1,449 crore in 9MFY24.
Furthermore, the company has a turnover of Rs 25,694 crore (approx. USD 3 billion). It is the integrated power utility of the diversified Torrent Group with group revenues of Rs 37,600 crore (approx. USD 4.5 billion) and a market cap of Rs 1,00,000 crore (approx. USD 12 billion). The company has planned a capex of Rs 9,000 crore capex over the next 5 years. As of December 2023,
On Thursday, shares of Torrent Power Ltd plunged 1.52 per cent to Rs 1,143.65 per share from its previous closing of Rs 1,173.05. The stock gave multibagger returns of 120 per cent 1 year whereas BSE Sensex Index is up by 23 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.
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