Torrent Power Surges 18% To Hit Life High After Q1 Profit Beats Estimates

Shares of Torrent Power Ltd. surged over 18.5% to hit a record high on Wednesday after its first-quarter profit beat analysts' estimates.

The company's net profit surged 7.2% year-on-year to Rs 996 crore in the quarter ended June 2024, according to an exchange filing. That compares with Rs 632 crore estimated by analysts polled by Bloomberg. The company attributed the high profit to an increase in merchant power sales at gas-based power plants, contributions from licensed distribution businesses, and an increase in tax expenses.

The Torrent Powers board also approved the complete sale of Torrent Electricals Private Ltd. for Rs 85 crore to its holding company, Torrent Investments Private Ltd., via an exchange filing on Tuesday.

Torrent Power Q1 FY25 Highlights (Consolidated, YoY) 

• Revenue up 23.3% at Rs 9,034 crore. (Bloomberg estimate: Rs 7,827 crore).

• Ebitda up 56.8% at Rs 1,858 crore. (Bloomberg estimate: Rs 1,396 crore).

• Ebitda margin at 20.6% versus 16.1% (Bloomberg estimate: 17.8%).

• Net profit up 87.2% at Rs 996 crore. (Bloomberg estimate: Rs 632 crore).

Shares of Torrent Power rose as much as 18.53% during the day to Rs 1898 apiece on the NSE. It was trading 17.53% higher at Rs 1,882 apiece, compared to a 0.18% advance in the benchmark Nifty 50 as of 11:30 a.m.

The stock has risen 175.54% in the last 12 months and 101.64% on a year-to-date basis. The total traded volume so far in the day stood at 47 times its 30-day average. The relative strength index was at 81.86 indicating that the stock may be overbought.

Three out of the 11 analysts tracking Torrent Power have a 'buy' rating on the stock, three recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 31.5%.