Review

TORRENT POWER 

Ticker : 532779
FV: Rs 10
52-Week H/L: Rs 313.80/230.45 

We had recommended Torrent Power in volume no. 36, issue no. 03 (dated November 11, 2019), when the scrip was trading at Rs 296.05. The company operates in two divisions: Bombay Exhibition Centre/realty division and engineering division. The stock was previously recommended due to a strong order book and increasing power procurement arrangements. In Q2FY20, on a consolidated basis, the company’s revenue increased by 12 per cent to Rs 3,842 crore from Rs 3,444.54 crore in Q2FY19. The PBDT for Q2FY20 stood at Rs 854.79 crore, an increase of 6.02 per cent, as compared to Rs 806.25 crore for Q2FY19. In Q2FY20, the net profit increased substantially by 82.72 per cent to Rs 755.60 crore as against Rs 413.52 crore in Q2FY19. For its sector, Torrent Power has a strong positioning and also the company’s balance sheet looks positive and healthy with an upward trend. Hence, we recommend a HOLD.