Torrent Power Ltd - 87.2% growth in quarterly profit-after-tax
Company name - Torrent Power Ltd
Last closing price(NSE:TORNTPOWER) - ₹1688.35 (as on 10-Sep-2024)
Estimated reading time - 3 minutes
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Executive Summary
Torrent Power Ltd is a leading integrated power utility company with presence across generation, transmission and distribution of power.
The company has a healthy ROCE of 14.8%, with pledged percentage 0%.
The company reported profit-before-tax quarterly growth of 94% on account of improved sales and the operating margin.
The company has a health pipeline of projects to continue the growth in FY 2025.
Stock price chart
Detailed analysis
About the company
The Torrent Group is a business group with 3 business divisions - Torrent Pharmaceuticals Ltd, Torrent Power Ltd and Torrent Gas Ltd.
Torrent Power Ltd is a leading integrated power utility company with presence across generation, transmission and distribution of power.
Planned projects in pipeline -
Financial analysis
Overview
The company has a healthy ROCE of 14.8%.
The pledged percentage is 0%, and the promoter holding is at 53.6%
Quarterly results
Growth in key metrics in the latest quarter Q1 - 2025 compared to the last year’s same quarter
Reported sales growth of 23.28%.
The operating margin improved by 31.25%.
Profit-after-tax growth of 87.2% reported on account of improved sales and the operating margin.
Out of the ₹1315 Cr in the profits reported, ₹102 is one-off and rest will be recurring as per the company management.
EPS growth of 91% reported.
Annual results
While the company posted a muted sales growth of 5.8% in FY 2024, the trailing twelve month(TTM) numbers are showing significant signs of growth -
TTM Sales growth is already at +6.2%.
The profit after tax(PAT) is trending at 24.47%.
The EPS growth is trending at 24.82%.
Peer comparison
The company’s ROCE is among the highest in the peers in the same sector.
The market cap of nearest peer JSW Energy is +59.8% higher than Torrent Power, while it’s total annual sales is 60% lower. This shows a potential for Torrent Power’s market cap to grow if they are able to maintain the growth rate.
Timing analysis
Institutional volume signs seen in the week of 29-July-2024 with a 13X spike in trading volumes.
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Disclaimer
This is not a stock recommendation. It’s an analysis of the stock basis the data available today, and the viewpoint can change in future.
Credits : Financial data source - screener.in