Mehabe score: 5 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Torrent Power is engaged in the business of generation, transmission and distribution of Electricity and of manufacture and sale of Cables.(Source : 202003-01 Annual Report Page No:111)Site:TORNTPOWERMain Symbol:TORNTPOWER
Stock trades at 473.0, above its 50dma 447.89. It also trades above its 200dma 389.91. The stock remains bullish on techicals
The 52 week high is at 508.85 and the 52week low is at 293.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has been maintaining a healthy dividend payout of 38.39%
Weakness
– The company has delivered a poor sales growth of 0.83% over past five years.
– has a low return on equity of 13.58% for last 3 years.
Competition
– The industry trades at a mean P/E of 27.0x. Adani Green trades at the industry’s max P/E of 729.65x. TORNTPOWER trades at a P/E of 17.6x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. TORNTPOWER has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -8.8%. The max 1- month return was given by JSW Energy: a return of 11.27 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 3084.0 cr compared to Rs 2984.0 cr for period ended Mar 2020, a rise of 3.4%
Operating Profits reported at Rs 914.0 cr for period ended Mar 2021 vis-vis 827.0 for period ended Mar 2020 .
Operating Margins expanded 192.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 8.26 compared to Rs 6.67 for previous quarter ended Dec 2020 and Rs -5.72 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 12173.0 cr for period ended Mar 2021 vis-vis sales of Rs 13641.0 cr for the period ended Mar 2020, a fall of 12.1%. The 3 year sales cagr stood at 1.9%.
Operating margins expanded to 28.0% for period ended Mar 2021 vis-vis 26.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 1291.0 cr for period ended Mar 2021 vis-vis sales of Rs 1174.0 cr for the period ended Mar 2020, rising 9.1%.
Company recorded a healthy Net Profit CAGR of 11.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 14.0% over the last 3 Years. – The stock has given a return of 46% on a 1 Year basis vis-vis a return of 28% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is -15% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 8.14% vis-vis 8.45% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 17.8% vis-vis 17.75% for Mar 2021
Conclusion
– has reduced debt.
– has been maintaining a healthy dividend payout of 38.39% – The company has delivered a poor sales growth of 0.83% over past five years.
– has a low return on equity of 13.58% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 447.89 and is trading at 473.0, thus bullish price action wise.
