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The stock of Torrent Power ended Monday’s session at ₹1350.15 on the NSE, down 4.1% from the previous close. After rallying nearly 90% in 2023, the stock of Torrent Power added another 60% in 2024. However, Torrent Power has largely underperformed in 2025, with a year-to-date fall of close to 10% and is down 32% from its October highs.
Over the last 18 months, Morgan Stanley has rated Torrent Power “Overweight” once and “Underweight” once. In September last year, the foreign brokerage had upgraded the stock to “Overweight” with a target price of ₹2268.
However, Morgan Stanley remains positive on the sector as it expects power demand to improve going forward. “Valuations for utility and capital goods (power related) coverage have corrected amid a sharp slowdown in power demand growth. Expect power demand to improve from Q2F26, driven by industrial and consumer segments,” wrote Morgan Stanley in an investor note.While Morgan Stanley reiterates its “Overweight” stands on Utilities stocks like Tata Power and NTPC, it remains “Overweight “on power equipment companies – BHEL andSuzlon Energy. Further, the brokerage has an equal weight rating on state-run Power Grid Corporation of India.
Also read: Torrent Power Q3 Results | Net profit surges 31% to ₹489 crore; declares interim dividend
Interestingly , the Street is divided on Torrent Power with equal number of “Buy” and “Sell” ratings. Of the eight analysts who track the stock on Bloomberg, four of them have “Buy” ratings whereas equal number of them suggests a “Sell”. In comparison, 20% of the analysts recommends to “Hold”.
During the December quarter, the net profit of Torrent Power increased by 32% year-on-year (YoY) to ₹476 crore on the back of 2% rise in revenue, which stood at ₹6,499 crore for the quarter.
First Published: Feb 11, 2025 9:24 am IS
