power

Torrent Power

TORNTPOWER · Nifty 50

1,407.3

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionpower sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score85/100 (STRONG). 1 positive flags, 1 concerns.
Historical Context32 similar technical setups. Average outcome: -9.6% decline. 0% positive.

Fundamental

85/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Torrent Power scores 85/100 on fundamentals (strong). Torrent Power: BROAD EXPANSION regime.

Fundamental Score: 85/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 12.7% broken into three drivers. Each shows how efficiently the company generates returns.

ROE12.7%=
8.3%Net Margin
×
0.6xTurnover
×
2.4xLeverage

ROE of 12.66% is moderate margin-driven and stable. Net margin of 8.3% × asset turnover of 0.64x × leverage of 2.4x.

What This Means

Net margin of 8.3% means the company keeps ₹8.3 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.64x means the company efficiently uses its assets to generate revenue. Leverage of 2.4x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

28.9%

Operating

14.7%

Net

8.3%

declining

Gross margin 28.9% → operating margin 14.7% → net margin 8.3%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 2.3x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 4.5x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.4x is moderate.

Free Cash Flow

MODERATE

FCF margin negative at -7.7% — spending more than earning. Check capex cycle.

Peer Comparison

Torrent Power is compared against 8 peers in the power sector.

Key Watchpoints

🟢

Breaks above ₹1478 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1337 (-5%)

Further downside risk

🟢

Power sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (58.0%) than equity (8.3%)
✅ High Earnings Quality: Cash flow covers earnings 2.3x — strong cash conversion

Risk Flags

🔴 1 Critical1 Positive2 total flags
🔴Cash covers only 8% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

High promoter holding: 62%
Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 0 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
29.1UNAVAILABLE
P/B Ratio
3.7HIGH
Market Cap
₹7014337.7L CrHIGH
From 52W High
77% of high
Sector Peers
8
Torrent Power Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight