Torrent Power, the integrated power utility of the Torrent Group, reported stellar growth in net profit and sales for the December quarter. On February 15, the stock of Torrent Power rose over 9 percent, indicating a positive market sentiment towards the company's growth prospects. At 10:51 am, the shares were trading at Rs 495 up 8.3 percent on the BSE.
Kkunal Parar, Vice-President (Technical Research), Choice Broking believes that if the stock is able to sustain at the current level then it presents a good buying opportunity for investors. In that case, the scrip could rally to Rs 552 and could draw support at Rs 464.
The company's net profit surged by 88 percent to Rs 694.54 crore compared to the same period last year, driven by higher income. The revenue from operations grew by an impressive 71 percent year-on-year (YoY) to Rs 6,442.79 crore.
Check out LIVE stock market coverage of February 15 here
In line with this performance, the company’s board has approved an interim dividend of Rs 22 per equity share for FY 2022-23, which includes a special dividend of Rs 13 per equity share.
Over the past three years, Torrent Power’s stock has risen over 55 percent, reflecting the company’s strong growth trajectory. ICICI Securities had upgraded the stock to ‘add’ from ‘hold’ in November after Q2 earnings, citing growth potential over FY23-FY24 driven by the distribution businesses and commissioning of new renewable capacities.
Moreover, with the government's focus on the clean energy transition, analysts believe that Torrent Power could be one of the beneficiaries. The company has a presence across the entire power value chain, including generation, transmission, and distribution, and is well-positioned to capitalize on the opportunities in the sector.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
