Multibagger Power stock engaged in generating, transmitting, and distributing Power jumped 12 percent in the day’s trade after it entered into an MoU of Rs. 47,350 Crores with the Government of Gujarat.
At 10:11 a.m the shares of Torrent Power Limited were trading at Rs. 1045.75, up 10.74 percent from its previous day’s close price of Rs. 944.30 and its market capitalization is Rs. 50,428 Crores. It has delivered multi-bagger returns of 113 percent in a year.
Torrent Power Limited has entered into a Memorandum of Understanding (MoU) of Rs. 47,350 Crores, with the Department of Energy & Petrochemicals, Government of Gujarat as part of Investment Promotion Activity for Vibrant Gujarat Global Summit 2024.
One of the MOUs comprises the establishment of 3,450 MW of Solar Power Projects, and 1,045 MW of Hybrid Power Projects, to be set up in the districts of Banaskantha, Jamnagar, Patan, and Surendranagar entailing a proposed investment of Rs 30,650 crores.
The second MoU calls for an investment of Rs 4,500 crores in the development of the the infrastructure of a solar park for a 7,000-MW Solar Power project to be set up in Banaskantha district.
The third MoU is for setting up a Green Hydrogen / Green Ammonia production facility with a capacity of 100 KTPA to be set up in Banaskantha / Dahej with a total proposed investment of Rs 7,200 crores.
Further, the last MoU pertains to an investment of Rs 5,000 crores in Torrent Power’s distribution business in Ahmedabad, Gandhinagar, Surat, Dahej SEZ, and Mandal Becharaji SIR.
Torrent Power is one of the largest companies in India’s power sector with a presence across the entire power value chain of generation, transmission, and distribution.
The company’s revenue from operations grew by 80.21 percent from Rs. 14,257.61 Crores in FY22 to Rs. 25,694.12 Crores in FY23, accompanied by increasing profits of Rs. 453.98 Crores to Rs. 2,117.43 Crores.
It has reported a return on equity (ROE) of 20.66 percent and a return on capital employed (ROCE) of 19.04 percent, it is making good returns on its equity and capital employed.
According to the latest shareholding data available for the September 2023 quarter, the company’s Promoters hold 53.57 percent stake, the Domestic Institutional Investors hold 23.08 percent and the Foreign Institutional Investors (FII) hold 6.17 percent.
Written by: Bharath K.S
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