Fundamentals

TORRENT POWER LIMITED 

Ticker : 532779
BUY: Rs.296.05
Target: Rs.330



Torrent Power Limited is an integrated utility engaged in the business of power generation, transmission and distribution. On the consolidated financial front, the net sales for the Q2FY20 came in at Rs. 3842 crore which is an increase of 12 per cent compared to net sales of Rs. 3444.54 crore for Q2FY19 due to improved performance by franchised distribution businesses and higher merchant power sales for the quarter. Despite rise in finance and depreciation costs, reflecting an additional capex in distribution and renewable projects, Torrent Power reported a 82.72 per cent YoY increase in the net profit gained for Q2FY20. Recently, the regulator approved a long-term power procurement arrangement for 278 MW between Torrent Power’s distribution business and UNOSUGEN power plant which has a capacity of 382.5 MW. Thus, we recommend a BUY.