Buy Torrent Power, target of Rs 146: Hem

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Hem Securities has initiated a buy rating on Torrent Power with a target price of Rs 146 in its August 1, 2008 research report. "The company has posted excellent results for the quarter ended June 2008. The net sales for Q1FY09 stood at Rs 11133.50 million against Rs 8978.70 million in Q1FY08 depicting a growth of 24 %. The expenditures have grown at 20.95% clearly depicting the strength of the company. EBITDA for Q1FY09 stood at Rs 1412.30 million, showing a sharp surge of over 50 % from the previous year's levels."

"Presently, the stock is trading at Rs 102 which is at 20.98 times to its earnings and 1.66 times to its book value of Rs 61.67. Since the stock seems undervalued against its peers and offers extremely good opportunities, we initiate a 'BUY' signal on the stock with a target price of Rs 146 in medium to long term investment horizon expecting an appreciation of about 43% from the current level of Rs 102," says Hem's research report.

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