Buy Torrent Power, target price Rs 365: Edelweiss

Edelweiss has buy call on Torrent Power with a target price of Rs 365. The current market price of Torrent Power Ltd. is Rs 338.45.

Torrent Power Ltd., incorporated in the year 2004, is a Mid Cap company (having a market cap of Rs 16297.72 Crore) operating in Power sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 3128.73 Crore, up 4.05 % from last quarter Sales of Rs 3007.05 Crore and down -18.57 % from last year same quarter Sales of Rs 3842.00 Crore Company reported net profit after tax of Rs 202.17 Crore in latest quarter.

Investment Rationale
The stock was able to post a smart recovery after being battered down to its short-term moving averages. Once prices are able to cross levels of Rs 344, the stock would give a smart rally upwards.

Promoter/FII Holdings
Promoters held 53.6 per cent stake in the company as of Sept 30, 2020, while FIIs held 9.1 per cent, DIIs 17.9 per cent and public and others 19.4 per cent.