Torrent Power Shares Could Rise 21%, Investec Projects After Upgrade
Key Takeaways
- •Investec upgraded Torrent Power and raised its target price, seeing up to 21% upside in the stock.
- •Torrent Power is expected to enter a 3-4 year earnings inflection phase driven by the 1.4 GW Nabha Power acquisition and accelerated renewable energy build-out.
- •Nabha Power is a Lakhimpur-based thermal power business that Torrent Power agreed to buy from CESC, adding significant coal-fired capacity.
- •Torrent Power supplies electricity across licensed areas in Gujarat, Uttar Pradesh and Maharashtra and is expanding its renewable portfolio alongside gas and coal assets.
- •India targets 500 GW of non-fossil fuel installed capacity by 2030, intensifying competition among utilities to scale solar, wind and hybrid portfolios.
Shares of Torrent Power could rise as much as 21%, according to Investec, which has upgraded the stock and raised its target price.
Torrent Power, the electricity generation, transmission and distribution arm of the Ahmedabad-headquartered Torrent Group, supplies power across licensed areas in Gujarat, Uttar Pradesh and Maharashtra and has been expanding its renewable energy portfolio alongside its gas and coal-based generation assets.
Investec said Torrent Power is entering a 3-4 year earnings inflection phase, driven by the acquisition of 1.4 GW Nabha Power and an accelerated renewable energy (RES) build-out. The Nabha acquisition refers to the Lakhimpur-based thermal power business Torrent agreed to buy from CESC, a deal that would add substantial coal-fired capacity to its generation fleet.
The upbeat stance on Torrent Power comes amid a broader push by Indian power producers to expand renewable capacity, as the country targets 500 GW of non-fossil fuel installed capacity by 2030, intensifying competition among utilities to scale up solar, wind and hybrid portfolios.
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