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Torrent Power touches a significant milestone of Rs 1,000 per share today; do you own it?

01 December 20234 mins read by Angel One
The company’s stock has generated an impressive multibagger return of around 200% in the last three years.
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Torrent Power Limited stands as a prominent integrated power utility company in India, operating extensively in the generation, transmission, and distribution of power. The company has a significant presence across multiple states in India, including Gujarat, Maharashtra, Uttar Pradesh, and Karnataka. The company’s share price touches a significant milestone of Rs 1,000 each today.

The company’s shares have reached their 52-week high price today, and they are currently trading at all-time high levels. Upon scrutinising today’s share volumes, it becomes apparent that there has been a substantial increase of over 6.5 times in trading volumes compared to its average volumes on the BSE. As of writing this article, the shares of the company are up by Rs 102.15 or 12.11% and are trading at Rs 946 each on the BSE.

The current market capitalisation of the company stands at Rs 45,466 crore and the stock has generated an impressive return of 75% in the past year and 655% in the last decade.

Stock Price Chart (Weekly Time Frame) 

Stock Price Chart (Weekly Time Frame) 

Stock Historical Performance

The stock made its market debut on November 28, 2006, opening at Rs 60 per share and concluded the listing day at Rs 70.70 per share. Notably, within a short span, on September 26, 2007, the stock achieved the milestone of Rs 100 per share, accomplishing this feat in just 302 days. Subsequently, the stock doubled again and reached Rs 200 per share.

After a considerable period, the stock saw another doubling in value, hitting a price of Rs 400 per share on February 24, 2021. Recently, in November of this year, there was another doubling of the company’s shares, escalating from Rs 400 to Rs 800 per share on November 13, 2023. Finally, today, the stock has reached Rs 1,000 per share.

Financial Performance

In the September quarter of FY24, the company experienced a moderate growth of 3.85% year-on-year (YoY) in revenue from operations, rising from Rs 6,703 crore to Rs 6,961 crore. The company’s operating profit increased from Rs 1,164 crore to Rs 1,221 crore, with an operating profit margin of 18%. Simultaneously, the net profit reached Rs 543 crore, compared to Rs 484 crore in the same quarter of FY23.

The company’s return on capital employed (ROCE) stands at 18.3%, and the return on equity (ROE) is at 19.6%. Additionally, the price-to-earnings ratio is 20.9 times.

Business Overview

The Transmission and Distribution segment includes licensed and franchisee-based transmission and distribution businesses, along with associated ancillary services. Additionally, this segment encompasses the Power Cable business.

The Renewables segment focuses on power generation from renewable energy sources, specifically wind and solar. Torrent Power Limited has a total thermal power generation capacity of 3,092 megawatts (MW), which includes a combination of coal-based, gas-based, solar, and wind power plants. In the renewable energy domain, the company operates with a capacity of 787 MW, culminating in an aggregate installed generation capacity of 4,110 MW. Furthermore, the company has established approximately 249 kilometres (km) and 105 km of 400 kV double-circuit transmission lines.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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