According to the sources, India’s power sector is the world’s third-largest in production and consumption, with an installed capacity of 425 GW as of October 2023. The country’s power demand is expected to reach 817 GW by 2030. The sector comprises generation, transmission, and distribution. The government aims to integrate over 500 GW of renewable energy by 2030.
Price Movement
With a market capitalization of Rs 65,515.02 crore, the shares of Torrent Power Ltd were trading at Rs 1,302.65 per share, decreasing around 3.50 percent as compared to the previous closing price of Rs 1349.85 apiece.
Brokerage Recommendation
Morgan Stanley downgraded the power stock from Overweight to Equal-weight, cutting its target price by 30% from ₹2,026 to ₹1,413. Despite the downgrade, the revised target suggests a 9% upside from Tuesday’s price of ₹1,297, reflecting a more cautious outlook on the stock’s growth potential.
Brokerage Rational
Morgan Stanley remains optimistic about the sector, expecting power demand to rise. Utility and power-related capital goods valuations have dipped due to a slowdown in demand growth. However, demand is projected to improve from Q2FY26, driven by industrial and consumer segments, supporting a positive long-term outlook.
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Project Updates
The company operationalized 274 MW of renewable energy, raising total capacity to 4.5 GW (2.7 GW gas, 1.5 GW renewable, 362 MW coal). It secured 2 GW pump storage hydro projects from MSEDCL and has a pipeline of 3 GW renewable, 2 GW pump storage, and transmission projects in Khavda and Solapur.
New Ventures
The company is set to commission its Green Hydrogen-CNG blending project in UP. It secured 18 kTPA green hydrogen allocation under SECI PLI at ₹28.89/kg. Additionally, it identified 8.4 GW pump storage sites in Maharashtra and UP and received an LOA for 2.2 GW with MSEDCL.
Future outlook
Management remains optimistic about sustaining operations despite weather challenges. While 80% of land for renewable projects is secured, acquisition and evacuation remain hurdles. They are assessing green hydrogen’s commercial viability before investment. The focus remains on expanding renewable capacity while navigating market and operational challenges.
Company profile
Torrent Power Ltd is a significant integrated power utility firm in India that generates, transmits, and distributes power. Its operations span Gujarat, Maharashtra, Uttar Pradesh, and Karnataka.
Written by Abhishek Singh
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