NSE: TORNTPOWER | BSE: 532779 | ISIN: INE813H01021
INDUSTRY : Electric Utilities
330.45 -2.40 (-0.72%)
NSEJul 09, 2020 15:31
The 4 reports from 2 analysts offering long term price targets for Torrent Power Ltd. have an average target of 4.00. The consensus estimate represents a downside of -98.79% from the last price of 330.45.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-05-19||Torrent Power Ltd.||Motilal Oswal||304.75||4.00||304.75 (8.43%)||Target met||Buy|
19 May 2020 Torrent Powers (TPW) 4QFY20 results highlight the improved performance of its distribution businesses (franchise and licensed) along with some benefit of merchant sales. EBITDA improved 17% YoY to INR8.3b. TPWs distribution business may get impacted due to lower volumes owing to the COVID-19 pandemic. However, a healthy balance sheet should help it to tide over this wave. TPWs 4QFY20 EBITDA rose 17% YoY to INR8.3b (v/s est. INR7.4b) amid lower T&D; losses and some merchant volumes. This was partly offset by the impact of new CERC norms on Sugen. The beat to our estimates was largely led by (1) improved performance of its distribution businesses (both franchise and licensed) amid lower T&D; losses, and (2) some merchant volumes. In addition, the company made a provision of (1) INR0.5b for possible cancellation of its SECI-V project, and (2) INR0.5b for bad debts adj.
|2019-12-18||Torrent Power Ltd.||Motilal Oswal||275.60||346.00||275.60 (19.90%)||Target met||Buy|
Key TPW has not tied-up new gas supplies for its UnoSugen PPA (effective from 1 Jul19). Instead, the company is (a) making use of gas tied up for Sugen (@USD6.5/mmbtu till Dec20) and (b) buying from spot, as required. While the Unosugen PPA has a ceiling on the cost of supply (INR5.6/kWh), current spot contract prices provide significant cushion (Exhibit 2). TPW believes that the natural gas market would remain oversupplied, and thus it would increase sourcing from spot contracts. Longer-term contracts (generally up to 1.5 years) could be entered, but pricing is done with reference to Brent (slope of ~10-11%) and resulting in higher cost. TPW has also contracted storage-cum-regasification capacity of 1mtpa at Petronet LNGs Dahej terminal for its imports. We note there is capacity in place to increase offtake, if required. Of the 17.5mtpa capacity at the Dahej terminal, only ~15.8 mtpa is contracted.
|2019-11-08||Torrent Power Ltd.||Edelweiss||294.20||294.20 (12.32%)|
|2019-08-06||Torrent Power Ltd.||Motilal Oswal||295.95||351.00||295.95 (11.66%)||6.22||Buy|
UnoSugen PPA kicks off but RE projects may be at risk EBITDA increased 9% YoY to INR8.3b (our estimate: INR8.1b) in 1QFY20, led by (a) increased merchant power sales, (b) higher renewable generation and (c) investments in the distribution license business. However, the gains from these segments were partly offset by the impact from the new CERC regulations on...
|2019-06-25||Torrent Power Ltd.||Motilal Oswal||272.50||317.00||272.50 (21.27%)||Target met||Buy|
The PPA is for the remaining life of the plant of 19 years. The annual fixed charge (AFC) is approved at the lower of CERC determined tariff or INR2.28b. The AFC approved by CERC is INR3.46b in FY19, but TPW has offered a discount as part of negotiation in the interest of consumers. The approved AFC equals to INR1.1/kWh (@ 85% PLF). Variable cost will be a pass-through. According to the tariff order, the PPA is subject to the purchase cost from UnoSugen (gas cost + fixed charges) not being more than the cost of medium-term power. The implied landed cost of power (incl. transmission) based on the recent medium-term contract will be ~INR5/kWh. This becomes the ceiling price for TPW. The company will have to enter into medium-term LNG contracts which are subject to the movement in crude oil prices (i.e.
|2019-05-16||Torrent Power Ltd.||Motilal Oswal||238.35||300.00||238.35 (38.64%)||Target met||Buy|
EBITDA grew 3% YoY to INR31.9b, while PAT was down 5% YoY to INR8.9b in FY19. The numbers are not comparable to the previous year, as the company used to follow cash-accounting for its regulated distribution business until FY18. Assuming similar accounting even in the previous year, TPW's EBITDA would have increased by ~10% and PBT by ~29%. The strong underlying performance was driven by: INR1.4b from the distribution franchisee, as AT&C; losses in Bhiwandi and Agra were down by ~240bp/480bp to 14.9%/16.1% in FY19. INR0.9b from the regulated distribution circles of Ahmedabad and Surat, led by...
|2019-03-19||Torrent Power Ltd.||Motilal Oswal||263.45||315.00||263.45 (25.43%)||Target met||Buy|
Torrent Power 19 March 2019 TPL has a diversified portfolio spanning (i) regulated electricity distribution, (ii) franchisee-based distribution (DF), (iii) a mix of gas- and coal-based conventional generation and (iv) renewable energy (RE) generation. The companys regulated distribution business is among the most efficient in India, delivering steady growth and generating assured returns. TPLs RE capacity is likely to more than double in two years to 1.4GW; it has an attractive mix of (a) feed-in tariff-based capacities generating a high RoE and (b) under-construction competitively bid projects at >12% equity IRR. It has a mix of gas- and coal-based conventional generation capacity of ~3.1GW. The sourcing of imported LNG has improved the PLF of its gas plant which is under PPA, the DF business performance has improved now with the risk of contract expiry behind, and the likely doubling of RE capacity has bolstered the growth prospects.
|2018-11-09||Torrent Power Ltd.||Edelweiss||268.60||320.00||268.60 (23.03%)||Buy|
|2018-10-12||Torrent Power Ltd.||Edelweiss||235.25||235.25 (40.47%)||Buy|
|2018-08-21||Torrent Power Ltd.||Edelweiss||248.75||248.75 (32.84%)||Buy|
|2018-08-03||Torrent Power Ltd.||HDFC Securities||232.55||232.55 (42.10%)||Results Update|
|2017-11-07||Torrent Power Ltd.||HDFC Securities||274.50||274.50 (20.38%)||Results Update|
|2017-05-29||Torrent Power Ltd.||HDFC Securities||186.10||186.10 (77.57%)||Results Update|
|2017-02-13||Torrent Power Ltd.||HDFC Securities||206.55||206.55 (59.99%)||Results Update|
|2016-05-27||Torrent Power Ltd.||Dynamic Levels||184.00||225.00||184.00 (79.59%)||Target met||Buy|
Be it ambitious power generation projects or taking on the energy sufficiency challenge for the entire state; efficient distribution at the grass-root level or enabling a pulsating urban lifestyle; uninterrupted power supply to industries...
|2016-02-04||Torrent Power Ltd.||AUM Capital||226.25||226.25 (46.06%)||Accumulate|
Torrent Power Ltd (TPL) has posted strong growth numbers during Q3FY16. The Consolidated net sales recorded a growth of 18.95% to Rs 3024.65 crs during the quarter as compared to Rs 2542.84 crs in Q3FY15. The consolidated results comprise of three subsidiaries Torrent Power Grid Ltd, Torrent Pipavav...
|2015-12-19||Torrent Power Ltd.||AUM Capital||173.65||239.00||173.65 (90.30%)||Buy|
Torrent Power, the integrated power utility of the Torrent Group, is one of the leading player in the Indian power sector. With an all round experience in generation, transmission and distribution of power and a proven track record of implementing large power projects, the company is the most experienced private sector player in the power sector. It is also in the business of manufacturing and supply of cables with the amalgamation of Torrent Cables Limited. In order to better serve the end...
|2012-02-27||Torrent Power Ltd.||Ashika Research||222.30||290.00||222.30 (48.65%)||Buy|
distribution of power in India. It has a generation capacity of 1647.5 megawatts (MW), including 1147.5 MW SUGEN gas based combined cycle power plant in Surat; 400 MW coal based thermal power station at Ahmedabad; and 100 MW...