Rs 1,825 crore order win: This multibagger power sector stock secures 150 MW wind-solar hybrid project!

Shares of the company gained more than 167 per cent in the last one year.

Torrent Power Ltd's Distribution Unit has secured a contract for the supply of 150 MW of power from a Wind Solar Hybrid Project, with a tariff set at Rs 3.65 per kWh. The project must be commissioned within 24 months from the Power Purchase Agreement (PPA), and the contract period spans 25 years from commissioning.

Notably, the annual Capacity Utilization Factor (CUF) cannot drop below 50 per cent, with a prescribed 2:1 ratio of wind to solar capacity. To meet this requirement, the company intends to install 245 MW of capacity, exceeding the contracted 150 MW. The domestic contract, valued at Rs 1,825 crore.

Earlier, the company secured a contract from its own Distribution Unit to set up a 300 MW wind-solar hybrid power project. The project involves supplying 300 MW of renewable energy at a tariff of Rs 3.65 per kWh. To meet a guaranteed annual capacity utilization factor (CUF) of 50 per cent, Torrent plans to install a total wind and solar capacity of 480 MW, with wind power accounting for 2/3rds of the generation mix. The project is expected to be commissioned within 24 months of the Power Purchase Agreement (PPA) and will operate for 25 years. The project is worth Rs 3,650 crore.

Also read, Dow Theory of Market Phases

Torrent Power Limited is engaged in the power generation, transmission and distribution business. It is a distribution licensee in Ahmedabad, Gandhinagar, Surat, Dahej SEZ, Dholera SIR, Dadra, Nagar Haveli, Daman and Diu and the distribution franchisee for Bhiwandi, Agra and SMK (Shil, Mumbra, Kalwa). The stock has delivered multibagger returns of over 167.82 per cent return in the last three years.

The stock has shown tremendous growth, and investors should keep a close eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.