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Torrent Power

NSEI:TORNTPOWER
Snowflake Description

Solid track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TORNTPOWER
NSEI
₹132B
Market Cap
  1. Home
  2. IN
  3. Utilities
Company description

Torrent Power Limited, an integrated power utility, engages in the generation, transmission, and distribution of electricity in the states of Gujarat, Maharashtra, Uttar Pradesh, and Karnataka, India. The last earnings update was 48 days ago. More info.


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TORNTPOWER Share Price and Events
7 Day Returns
3.1%
NSEI:TORNTPOWER
4%
IN Electric Utilities
8.9%
IN Market
1 Year Returns
5.9%
NSEI:TORNTPOWER
-23.5%
IN Electric Utilities
-30.6%
IN Market
TORNTPOWER Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Torrent Power (TORNTPOWER) 3.1% -7.9% -2.3% 5.9% 18% 69.3%
IN Electric Utilities 4% -17% -24.8% -23.5% -20% -12.3%
IN Market 8.9% -24.8% -29.4% -30.6% -21.5% -10.4%
1 Year Return vs Industry and Market
  • TORNTPOWER outperformed the Electric Utilities industry which returned -23.5% over the past year.
  • TORNTPOWER outperformed the Market in India which returned -30.6% over the past year.
Price Volatility
TORNTPOWER
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Torrent Power undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Torrent Power to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Torrent Power.

NSEI:TORNTPOWER Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.8%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:TORNTPOWER
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.254 (1 + (1- 35%) (66.57%))
0.574
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (0.8 * 7.85%)
12.76%

Discounted Cash Flow Calculation for NSEI:TORNTPOWER using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Torrent Power is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NSEI:TORNTPOWER DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 12.76%)
2020 6,313.00 Analyst x1 5,598.62
2021 14,282.00 Analyst x2 11,232.56
2022 24,586.50 Analyst x2 17,148.71
2023 26,188.71 Est @ 6.52% 16,199.21
2024 27,892.45 Est @ 6.51% 15,300.70
2025 29,704.88 Est @ 6.5% 14,450.98
2026 31,633.49 Est @ 6.49% 13,647.77
2027 33,686.12 Est @ 6.49% 12,888.74
2028 35,871.05 Est @ 6.49% 12,171.62
2029 38,197.04 Est @ 6.48% 11,494.21
Present value of next 10 years cash flows ₹130,133.00
NSEI:TORNTPOWER DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹38,197.04 × (1 + 6.48%) ÷ (12.76% – 6.48%)
₹647,646.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹647,646.61 ÷ (1 + 12.76%)10
₹194,889.04
NSEI:TORNTPOWER Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹130,133.00 + ₹194,889.04
₹325,022.04
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹325,022.04 / 480.62
₹676.26
NSEI:TORNTPOWER Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹676.26
Current discount Discount to share price of ₹279.05
= -1 x (₹279.05 - ₹676.26) / ₹676.26
58.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Torrent Power is available for.
Intrinsic value
>50%
Share price is ₹279.05 vs Future cash flow value of ₹676.26
Current Discount Checks
For Torrent Power to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Torrent Power's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Torrent Power's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Torrent Power's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Torrent Power's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:TORNTPOWER PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹30.64
NSEI:TORNTPOWER Share Price ** NSEI (2020-03-31) in INR ₹279.05
India Electric Utilities Industry PE Ratio Median Figure of 7 Publicly-Listed Electric Utilities Companies 8.94x
India Market PE Ratio Median Figure of 2,613 Publicly-Listed Companies 9.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Torrent Power.

NSEI:TORNTPOWER PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:TORNTPOWER Share Price ÷ EPS (both in INR)

= 279.05 ÷ 30.64

9.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Torrent Power is overvalued based on earnings compared to the IN Electric Utilities industry average.
  • Torrent Power is good value based on earnings compared to the India market.
Price based on expected Growth
Does Torrent Power's expected growth come at a high price?
Raw Data
NSEI:TORNTPOWER PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
1.9%per year
India Electric Utilities Industry PEG Ratio Median Figure of 5 Publicly-Listed Electric Utilities Companies 1x
India Market PEG Ratio Median Figure of 400 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

NSEI:TORNTPOWER PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.11x ÷ 1.9%

4.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Torrent Power is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Torrent Power's assets?
Raw Data
NSEI:TORNTPOWER PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹201.90
NSEI:TORNTPOWER Share Price * NSEI (2020-03-31) in INR ₹279.05
India Electric Utilities Industry PB Ratio Median Figure of 9 Publicly-Listed Electric Utilities Companies 0.64x
India Market PB Ratio Median Figure of 3,612 Publicly-Listed Companies 0.62x
NSEI:TORNTPOWER PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:TORNTPOWER Share Price ÷ Book Value per Share (both in INR)

= 279.05 ÷ 201.90

1.38x

* Primary Listing of Torrent Power.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Torrent Power is overvalued based on assets compared to the IN Electric Utilities industry average.
X
Value checks
We assess Torrent Power's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. Torrent Power has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Torrent Power expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Torrent Power expected to grow at an attractive rate?
  • Torrent Power's earnings growth is positive but not above the low risk savings rate of 6.5%.
Growth vs Market Checks
  • Torrent Power's earnings growth is positive but not above the India market average.
  • Torrent Power's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:TORNTPOWER Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:TORNTPOWER Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 1.9%
NSEI:TORNTPOWER Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 5.1%
India Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 11%
India Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
India Market Earnings Growth Rate Market Cap Weighted Average 19.6%
India Market Revenue Growth Rate Market Cap Weighted Average 8.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:TORNTPOWER Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:TORNTPOWER Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 156,192 34,697 15,635 3
2021-03-31 154,998 33,692 14,836 5
2020-03-31
2020-03-31 144,057 32,936 14,939 4
NSEI:TORNTPOWER Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 135,819 14,730
2019-09-30 137,564 29,342 12,906
2019-06-30 133,590 9,484
2019-03-31 131,510 24,246 8,989
2018-12-31 130,365 10,919
2018-09-30 125,316 10,599
2018-06-30 119,963 9,654
2018-03-31 115,121 27,635 9,423
2017-12-31 111,815 8,611
2017-09-30 107,536 7,628
2017-06-30 105,161 5,861
2017-03-31 100,001 23,560 4,290

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Torrent Power's earnings are expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).
  • Torrent Power's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:TORNTPOWER Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Torrent Power Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TORNTPOWER Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 31.83 33.10 30.60 4.00
2021-03-31 30.24 37.82 27.00 6.00
2020-03-31
2020-03-31 29.05 32.90 26.90 4.00
NSEI:TORNTPOWER Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 30.64
2019-09-30 26.85
2019-06-30 19.73
2019-03-31 18.70
2018-12-31 22.73
2018-09-30 22.06
2018-06-30 20.09
2018-03-31 19.61
2017-12-31 17.92
2017-09-30 15.88
2017-06-30 12.19
2017-03-31 8.92

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Torrent Power is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Torrent Power's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Torrent Power has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Torrent Power performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Torrent Power's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Torrent Power's year on year earnings growth rate has been positive over the past 5 years.
  • Torrent Power's 1-year earnings growth exceeds its 5-year average (34.9% vs 19.4%)
  • Torrent Power's earnings growth has exceeded the IN Electric Utilities industry average in the past year (34.9% vs 12.8%).
Earnings and Revenue History
Torrent Power's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Torrent Power Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TORNTPOWER Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 135,819.30 14,730.20 5,910.90
2019-09-30 137,564.30 12,905.90 5,659.80
2019-06-30 133,589.70 9,483.60 5,282.20
2019-03-31 131,509.70 8,989.40 5,154.20
2018-12-31 130,365.30 10,919.40 4,833.70
2018-09-30 125,315.60 10,599.10 4,792.80
2018-06-30 119,962.80 9,653.80 4,857.00
2018-03-31 115,120.90 9,423.10 4,896.10
2017-12-31 111,815.20 8,611.00 4,678.00
2017-09-30 107,535.70 7,628.30 4,559.10
2017-06-30 105,160.60 5,861.10 4,470.80
2017-03-31 100,001.00 4,289.50 4,486.40
2016-12-31 100,620.80 3,295.60 4,309.00
2016-09-30 107,674.40 5,819.80 4,289.60
2016-06-30 112,993.00 6,880.60 4,095.80
2016-03-31 117,158.40 9,002.00 4,071.20
2015-12-31 116,014.80 10,194.60 5,204.20
2015-09-30 112,704.00 7,162.20 5,044.40
2015-06-30 107,618.60 4,469.30 5,121.60
2015-03-31 103,960.30 3,596.90 3,483.80
2014-12-31 99,476.10 3,555.30 4,566.30
2014-09-30 94,293.20 2,512.50 4,521.00
2014-06-30 90,332.00 1,988.90 4,266.00
2014-03-31 86,811.20 1,052.60 4,262.80
2013-12-31 84,975.70 -499.50 4,572.40
2013-09-30 84,031.60 812.20 4,520.80
2013-06-30 83,103.00 2,748.80 4,433.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Torrent Power has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Torrent Power used its assets more efficiently than the IN Electric Utilities industry average last year based on Return on Assets.
  • Torrent Power has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Torrent Power's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Torrent Power has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Torrent Power's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Torrent Power's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Torrent Power is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Torrent Power's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Torrent Power's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Torrent Power Company Filings, last reported 3 months ago.

NSEI:TORNTPOWER Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 97,368.10 87,680.50 31,915.00
2019-09-30 97,368.10 87,680.50 31,915.00
2019-06-30 90,076.20 97,404.70 8,780.70
2019-03-31 90,076.20 97,404.70 8,780.70
2018-12-31 87,518.70 87,915.50 22,123.70
2018-09-30 87,518.70 87,915.50 22,123.70
2018-06-30 77,554.50 93,321.50 9,897.60
2018-03-31 77,554.50 93,321.50 9,897.60
2017-12-31 73,203.10 85,140.40 13,958.80
2017-09-30 73,203.10 85,140.40 13,958.80
2017-06-30 69,210.20 87,933.10 9,544.60
2017-03-31 69,210.20 87,933.10 9,254.70
2016-12-31 66,756.70 80,707.90 21,070.80
2016-09-30 66,756.70 80,707.90 21,070.80
2016-06-30 75,662.20 85,986.90 12,876.40
2016-03-31 65,005.20 85,482.30 10,733.90
2015-12-31 73,496.70 74,571.50 16,157.30
2015-09-30 73,496.70 74,571.50 16,157.30
2015-06-30 65,864.90 93,804.30 24,001.70
2015-03-31 65,864.90 93,804.30 24,006.70
2014-12-31 63,834.10 86,880.50 26,374.60
2014-09-30 63,834.10 86,880.50 26,374.60
2014-06-30 62,349.10 94,768.90 24,487.00
2014-03-31 62,349.10 94,768.90 24,487.00
2013-12-31 61,414.50 71,357.10 20,571.50
2013-09-30 61,414.50 71,357.10 20,571.50
2013-06-30 61,347.50 80,500.60 15,069.10
  • Torrent Power's level of debt (90.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (136.2% vs 90.1% today).
  • Debt is well covered by operating cash flow (33.5%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Torrent Power's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Torrent Power has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Torrent Power's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.37%
Current annual income from Torrent Power dividends. Estimated to be 2.34% next year.
If you bought ₹2,000 of Torrent Power shares you are expected to receive ₹47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Torrent Power's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.95%).
  • Torrent Power's dividend is below the markets top 25% of dividend payers in India (4.16%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:TORNTPOWER Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
India Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 5.2%
India Market Average Dividend Yield Market Cap Weighted Average of 1419 Stocks 1.9%
India Minimum Threshold Dividend Yield 10th Percentile 0.5%
India Bottom 25% Dividend Yield 25th Percentile 0.9%
India Top 25% Dividend Yield 75th Percentile 4.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:TORNTPOWER Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 6.68 4.00
2021-03-31 6.40 4.00
2020-03-31
2020-03-31 13.27 3.00
NSEI:TORNTPOWER Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2020-02-12 6.600 2.221
2019-08-05 5.000 1.740
2018-05-29 5.000 1.992
2017-07-10 2.200 0.922
2017-05-23 2.200 1.184
2016-05-18 4.500 2.398
2016-03-10 4.500 1.940
2015-05-12 1.500 0.863
2014-05-13 0.500 0.323
2013-06-28 2.000 2.193
2013-05-29 2.000 1.632
2012-07-26 6.500 4.060
2012-01-23 6.000 3.022
2011-07-11 3.000 1.375
2010-05-07 3.000 1.073
2009-06-01 2.000 0.781
2009-05-18 2.000 1.455

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Torrent Power's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).
X
Income/ dividend checks
We assess Torrent Power's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Torrent Power afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Torrent Power has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Torrent Power's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jinal Mehta
COMPENSATION ₹75,942,000
AGE 36
TENURE AS CEO 1.8 years
CEO Bio

Mr. Jinal Mehta serves as the Chief Executive Officer and Director of Torrent Energy Ltd. Mr. Mehta has been a Whole-Time Director of Torrent Power Ltd., since October 19, 2011 and also its Managing Director since April 2018 and served as its Non-Executive Director from October 2011 to April 5, 2014. He holds Bachelor of Business Studies from University Of Technology Sydney and Master of Business Administration from University Of Technology Sydney.

CEO Compensation
  • Jinal's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jinal's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Torrent Power management team in years:

1.3
Average Tenure
60.5
Average Age
  • The average tenure for the Torrent Power management team is less than 2 years, this suggests a new team.
Management Team

Jinal Mehta

TITLE
MD & Whole-Time Director
COMPENSATION
₹76M
AGE
36
TENURE
1.8 yrs

Sanjay Dalal

TITLE
Chief Financial Officer
COMPENSATION
₹24M
AGE
58
TENURE
1.8 yrs

Rahul Shah

TITLE
Company Secretary & Compliance Officer
AGE
41
TENURE
0.8 yrs

Samir Shah

TITLE
Executive Officer
COMPENSATION
₹9M
AGE
58
TENURE
0.8 yrs

Deepak Dalal

TITLE
Executive Officer
AGE
74

Amar Singh

TITLE
Vice President
COMPENSATION
₹10M
AGE
61

Asis Ghosh

TITLE
Vice President
COMPENSATION
₹17M
AGE
61

Harnish Patel

TITLE
Vice President
COMPENSATION
₹7M
AGE
63

Jayesh Desai

TITLE
Executive Director
COMPENSATION
₹11M
AGE
63

L. Lalwani

TITLE
Executive Director
COMPENSATION
₹49M
AGE
60
Board of Directors Tenure

Average tenure and age of the Torrent Power board of directors in years:

6.5
Average Tenure
65
Average Age
  • The tenure for the Torrent Power board of directors is about average.
Board of Directors

Samir Mehta

TITLE
Chairman
COMPENSATION
₹100M
AGE
55
TENURE
1.8 yrs

Jinal Mehta

TITLE
MD & Whole-Time Director
COMPENSATION
₹76M
AGE
36
TENURE
8.4 yrs

Sudhir Mehta

TITLE
Chairman Emeritus
COMPENSATION
₹100M
AGE
65
TENURE
1.8 yrs

Pankaj Patel

TITLE
Independent Non-Executive Director
COMPENSATION
₹3M
AGE
66
TENURE
13.4 yrs

Samir Barua

TITLE
Independent Non-Executive Director
COMPENSATION
₹3M
AGE
67
TENURE
12.2 yrs

Keki Mistry

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
64
TENURE
10 yrs

Bhavna Doshi

TITLE
Independent Director
COMPENSATION
₹3M
AGE
66
TENURE
4.6 yrs

Dharmishta Raval

TITLE
Independent Director
COMPENSATION
₹2M
TENURE
4.4 yrs

Sunaina Tamar

TITLE
Non-Executive Non-Independent Director
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Torrent Power's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Torrent Power has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Torrent Power (NSE:TORNTPOWER) Have A Healthy Balance Sheet?

Check out our latest analysis for Torrent Power What Is Torrent Power's Net Debt? … NSEI:TORNTPOWER Historical Debt, August 13th 2019 How Strong Is Torrent Power's Balance Sheet? … Our View To be frank both Torrent Power's conversion of EBIT to free cash flow and its track record of covering its interest expense with its EBIT make us rather uncomfortable with its debt levels.

Simply Wall St -

Can You Imagine How Chuffed Torrent Power's (NSE:TORNTPOWER) Shareholders Feel About Its 115% Share Price Gain?

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, Torrent Power achieved compound earnings per share (EPS) growth of 53% per year. … We note that for Torrent Power the TSR over the last 5 years was 133%, which is better than the share price return mentioned above.

Simply Wall St -

Does Torrent Power Limited (NSE:TORNTPOWER) Create Value For Shareholders?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Torrent Power: 0.093 = ₹20b ÷ (₹246b - ₹32b) (Based on the trailing twelve months to March 2019.) Therefore, Torrent Power has an ROCE of 9.3%. … Do Torrent Power's Current Liabilities Skew Its ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Don't Sell Torrent Power Limited (NSE:TORNTPOWER) Before You Read This

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Torrent Power: P/E of 13.07 = ₹244.5 ÷ ₹18.7 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Companies that shrink earnings per share quickly will rapidly decrease the 'E' in the equation. … How Does Torrent Power's Debt Impact Its P/E Ratio?

Simply Wall St -

What Kind Of Shareholders Own Torrent Power Limited (NSE:TORNTPOWER)?

See our latest analysis for Torrent Power NSEI:TORNTPOWER Ownership Summary, June 23rd 2019 What Does The Institutional Ownership Tell Us About Torrent Power? … We can see that Torrent Power does have institutional investors; and they hold 32% of the stock. … Private Company Ownership Our data indicates that Private Companies hold 54%, of the company's shares.

Simply Wall St -

Is Torrent Power Limited's (NSE:TORNTPOWER) 13% ROE Strong Compared To Its Industry?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Torrent Power Limited (NSE:TORNTPOWER): The Best Of Both Worlds

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

Is There More To Torrent Power Limited (NSE:TORNTPOWER) Than Its 9.7% Returns On Capital?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Torrent Power Limited (NSE:TORNTPOWER)

Based on the last twelve months, Torrent Power's P/E ratio is 11.22. … How Do I Calculate Torrent Power's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Shareholders Are Thrilled That The Torrent Power (NSE:TORNTPOWER) Share Price Increased 209%

During the five years of share price growth, Torrent Power moved from a loss to profitability. … We can see that the Torrent Power share price is up 0.6% in the last three years. … This EPS growth is higher than the 0.2% average annual increase in the share price over the same three years.

Simply Wall St -

Company Info

Description

Torrent Power Limited, an integrated power utility, engages in the generation, transmission, and distribution of electricity in the states of Gujarat, Maharashtra, Uttar Pradesh, and Karnataka, India. It owns coal, gas, and renewable power plants with a generating capacity of 3,600 MW. The company also transmits and distributes electricity to approximately three million customers in the cities of Ahmedabad, Gandhinagar, Surat, Bhiwandi, Agra, and Dahej SEZ. In addition, it is also involved in the manufacture and supply of power cables. Torrent Power Limited was incorporated in 2004 and is based in Ahmedabad, India. Torrent Power Limited is a subsidiary of Torrent Private Limited.

Details
Name: Torrent Power Limited
TORNTPOWER
Exchange: NSEI
Founded: 2004
₹131,713,029,655
480,616,784
Website: http://www.torrentpower.com
Address: Torrent Power Limited
Samanvay, 600,
Tapovan, Ambavadi,
Ahmedabad,
Gujarat, 380015,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI TORNTPOWER Equity Shares National Stock Exchange of India IN INR 28. Nov 2006
BSE 532779 Equity Shares Mumbai Stock Exchange IN INR 28. Nov 2006
Number of employees
Current staff
Staff numbers
0
Torrent Power employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 13:07
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/12
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.