Bhavin Shah, CEO of Equirus Securities told CNBC-TV18, "A few weeks back there was a judgement for Gujarat regulatory agency that allowed for a pass-through of the variance in the fuel supply that is basically very positive for Torrent Power. The impact is something up to the tune of close to Rs 600 crore per year over next two years. That has resulted in this stock appreciating from Rs 70-80 range that it was trading earlier."
"However, we think that even at current price it is only factoring in the primary distribution franchise of the company and the power plants that support their distribution business. Their new plants that are awaiting availability of guests are not really factored into this valuation and that itself, even in the worst case, could suggest at least another 50 percent upside if one takes a viewpoint of 1-2 years," he said. "However, in the base case one could be looking at an upside of another 150 percent from current levels. So we think that it is a very safe investment if one is willing to take a longer horizon on the stock." Disclosure: He owns Torrent Power, J&K Bank and Senan Exploration in his portfolio.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!
