Torrent Power Stock Price Analysis and Quick Research Report. Is Torrent Power an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Torrent Power. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Torrent Power has a PE ratio of 24.2425401317488 which is high and comparatively overvalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Torrent Power has ROA of 9.3706% which is a bad sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Torrent Power has a Current ratio of 1.3649.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Torrent Power has a ROE of 19.3324%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Torrent Power has a Debt to Equity ratio of 0.3641 which means that the company has low proportion of debt in its capital.

• Sales growth: Torrent Power has reported revenue growth of 9.799% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Torrent Power for the current financial year is 19.7727786131692%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Torrent Power is Rs 19 and the yield is 1.4955%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Torrent Power is Rs 52.2965. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Torrent Power in Ticker for free. Also, one can get the intrinsic value of Torrent Power by using Valuation Calculators, which are available with a Finology ONE subscription. 

Torrent Power FAQs

Q1. What is Torrent Power share price today?
Ans: The current share price of Torrent Power is Rs 1267.8.

Q2. What is the market capitalisation of Torrent Power?
Ans: Torrent Power has a market capitalisation of Rs 63884.89118154 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Torrent Power?
Ans: The PE ratio of Torrent Power is 24.2425401317488 and the P/B ratio of Torrent Power is 3.52156688893815, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Torrent Power share?
Ans: The 52-week high share price of Torrent Power is Rs 2037, and the 52-week low share price of Torrent Power is Rs 1207.25.

Q5. Does Torrent Power pay dividends?
Ans: Currently, Torrent Power pays dividends. Dividend yield of Torrent Power is around 1.4955%.

Q6. What are the face value and book value of Torrent Power shares?
Ans: The face value of Torrent Power shares is Rs 10, while the book value per share of Torrent Power is around Rs 360.0102. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Torrent Power?
Ans: Torrent Power has a total debt of Rs 6355.47 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Torrent Power?
Ans: The ROE of Torrent Power is 19.3324% and ROCE of Torrent Power is 17.4389%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Torrent Power a good buy for the long term?
Ans: The Torrent Power long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Torrent Power undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Torrent Power appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Torrent Power’s financials?
Ans: You can review Torrent Power’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.