Company Board Approves New Subsidiary To Boost Renewable Energy, EPC Solutions, And Infrastructure Development
Company's three-year return stands impressively at 173.31 per cent, highlighting strong long-term growth.
Through its wholly-owned subsidiary Torrent Green Energy Private Limited, Torrent Power Limited has announced the setting up of a new step-down subsidiary namely Torrent Urja Projects Private Limited (TUPPL). TUPPL has an authorized and paid-up share capital of Rs 5 lakh and is expected to focus on the development of renewable energy projects. The main objective of the company is to offer EPC and associated solutions for thermal, hydro, energy storage and green hydrogen and other infrastructure development projects.
TUPPL shall also be engaged in the business of trading, manufacturing and distribution of power generation facilities. This strategic move is in line with Torrent Power's vision of growing its renewable energy business and increasing its capacity in infrastructure development. The establishment of TUPPL is in line with Torrent Power's vision of sustainable energy generation and supply and the company is well positioned to seize on the opportunities presented by the growing renewable energy industry.
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Torrent Power Ltd is a leading integrated power utility company in India with its operations in the power generation, transmission and distribution sectors. The company has a strong presence in Gujarat, Maharashtra, Uttar Pradesh and Karnataka. Its business segments include Transmission & Distribution, which constitutes 89 per cent of its business, Thermal Power Generation at 8 per cent and Renewable Power Generation at 3 per cent. It distributes about 30 billion units of electricity to over 4.13 million customers with a very low loss of 2.7 per cent and very high availability of more than 99 per cent.
The company is adding to its renewable energy generation capacity and plans to achieve 10 GW by 2030 at a cost of Rs 57,000 crore. Some of the projects undertaken by the company include a 5 GW solar wind hybrid project in Gujarat and a Green Hydrogen and Ammonia Project. Some of the strategic initiatives and investments of Torrent Power in renewable energy and infrastructure development are in line with the company's vision of sustainable growth and innovation in the power sector.
Torrent Power Limited is currently trading at Rs 1,531.5. Over the past year, the stock has touched a 52-week high of Rs 1,972.7 and a 52-week low of Rs 1,235.65. The company commands a market capitalization of Rs 77,173 crore, reflecting its significant presence in the Indian power sector.
In terms of performance, Torrent Power has delivered a negative return of -2.47 per cent over the past year. However, its three-year return stands impressively at 173.31 per cent, highlighting strong long-term growth. The stock is currently trading at a price-to-earnings (PE) ratio of 31.78, indicating moderate valuation compared to industry peers. The company has been maintaining a healthy dividend payout of 65.4 per cent.
Among its notable shareholders, Gujarat State Financial Services Ltd holds a 2.36 per cent stake in the company, reinforcing the stock's appeal to institutional and public investors.
Disclaimer: The article is for informational purposes only and not investment advice.