Check Before You Invest : Torrent Power Ltd

Q: Which industry/sub-sector does Torrent Power Ltd belong to?

Torrent Power Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q: Is Torrent Power Ltd a good quality company?

Torrent Power Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Torrent Power Ltd undervalued or overvalued?

Torrent Power Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 29.17, Historic Median: 24.52. Price to Book, Current: 3.94, Historic Median: 3.12. Price to Sales, Current: 3.44, Historic Median: 2.21. EV to EBITDA, Current: 15.98, Historic Median: 10.06

Q: Is Torrent Power Ltd a good buy now?

Torrent Power Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Torrent Power Ltd?

Torrent Power Ltd revenue growth is 9.8% for FY-2025, which is in line with its 5-year CAGR of 10.27%, indicating stable growth.

Q: Gross Profit margin of Torrent Power Ltd?

Torrent Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 19% for FY-2025, which is below its 5-year median of 21.2%, indicating decreasing margins.

Q: Operating Profit Margin of Torrent Power Ltd?

Torrent Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.87% for FY-2025, which is below its 5-year median of 22.48% indicating decreasing margins.

Q: Net Profit Margin of Torrent Power Ltd?

Torrent Power Ltd Net Profit Margin is 13.01% for FY-2025, is above its 5-year median of 11.17%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 19, Historic Median: 21.2. Operating Profit Margin (%), Current: 19.87, Historic Median: 22.48. Net Profit Margin (%), Current: 13.01, Historic Median: 11.17

Q: Return on Asset of Torrent Power Ltd?

Torrent Power Ltd Return on Asset is 9.37%, which is above its 5-year historical median of 6.52%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Torrent Power Ltd?

Torrent Power Ltd Return on capital employed is 17.44% for FY-2025, which is above its 5-year historical median of 15.69%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Torrent Power Ltd

Snapshot

Q.1 Which industry/sub-sector does Torrent Power Ltd belong to?

Torrent Power Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is Torrent Power Ltd a good quality company?

Torrent Power Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Torrent Power Ltd undervalued or overvalued?

Torrent Power Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	29.17	24.52
Price to Book	3.94	3.12
Price to Sales	3.44	2.21
EV to EBITDA	15.98	10.06

Q.4 Is Torrent Power Ltd a good buy now?

Torrent Power Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Torrent Power Ltd?

Torrent Power Ltd revenue growth is 9.8% for FY-2025, which is in line with its 5-year CAGR of 10.27%, indicating stable growth.

Q.2 Gross Profit margin of Torrent Power Ltd?

Torrent Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 19% for FY-2025, which is below its 5-year median of 21.2%, indicating decreasing margins.

Q.3 Operating Profit Margin of Torrent Power Ltd?

Torrent Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.87% for FY-2025, which is below its 5-year median of 22.48% indicating decreasing margins.

Q.4 Net Profit Margin of Torrent Power Ltd?

Torrent Power Ltd Net Profit Margin is 13.01% for FY-2025, is above its 5-year median of 11.17%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	19	21.2
Operating Profit Margin (%)	19.87	22.48
Net Profit Margin (%)	13.01	11.17

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Torrent Power Ltd?

Torrent Power Ltd Return on Asset is 9.37%, which is above its 5-year historical median of 6.52%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Torrent Power Ltd?

Torrent Power Ltd Return on capital employed is 17.44% for FY-2025, which is above its 5-year historical median of 15.69%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Torrent Power Ltd?

Torrent Power Ltd Return on equity is 19.33% for FY-2025, which is above its 5-year historical median of 15.6%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Torrent Power Ltd?

Torrent Power Ltd Cash conversion cycle is 13 days, in line with its 5-year historical median of 13 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.72	0.72
ROE (%)	19.33	15.6
ROCE (%)	17.44	15.69
Cash Conversion Cycle	13 days	13 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Torrent Power Ltd?

Torrent Power Ltd Debt-to-Equity ratio is 0.36, which is lower the industry average of 0.44, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Torrent Power Ltd?

Torrent Power Ltd Debt to cash flow from operations is 1.49, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Torrent Power Ltd?

Q.1 Promoter shareholding and pledge status of Torrent Power Ltd?

Promoters hold 51.09% of the Torrent Power Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Torrent Power Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Torrent Power Ltd vs industry peers?

Torrent Power Ltd revenue CAGR is 10.27%, compared to the industry median CAGR of 5.38%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	9.8	5.4
Gross Profit Growth (%)	16.8	4.6
Operating Profit Growth (%)	15.4	2.1
Net Profit Growth (%)	58.6	9.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.72	0.26
ROE (%)	19.33	10.18
ROCE (%)	17.44	10.95
Cash Conversion Cycle (days)	12.92	69

Valuation & price assessment

Q.1 Stock return of Torrent Power Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 22.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	22.6%	27.1%	41.4%	7.3%

Q.2 Valuation ratios of Torrent Power Ltd vs historical?

The current P/E ratio of 29.17 is higher than its historical median of 24.52, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	29.17	24.52	27.37
Price to Book	3.94	3.12	1.82
Price to Sales	3.44	2.21	6.75
EV to EBITDA	15.98	10.06	13.61

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Check Before You Invest : Torrent Power Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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