1 TORNTPOWER share price target reports by brokerages below. See what is analyst's view on TORNTPOWER share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Outlook for TPW’s gas plants has improved with low LNG prices, sourcing of imported LNG and the offtake of UnoSugen PPA. This, along with continued capitalization within regulated distribution, AT&C loss reduction in franchise business and debt repayment, would drive earnings CAGR of 19% over FY19-22. We maintain our Buy rating with a target price of INR346/share.
UnoSugen gets green signal, but with caveats. Upgrading target price to factor in UnoSugen PPA; Maintain Buy We have upgraded our SOTP-based target price to INR317, factoring in the benefit of the PPA. Given that the plant will be exposed to the movement in LNG prices, we assume that TPW at best will be able to recover its debt obligation in UnoSugen over the life of the plant. We expect a PAT CAGR of ~19% over FY19-21, driven by AT&C loss reduction in franchisee, steady growth in regulated distribution, and doubling of RE capacity and UnoSugen PPA. Maintain Buy.
Operating parameters improve across segments. Strong positioning and healthy balance sheet; Maintain Buy We cut our EBITDA estimate by ~5%/3% to INR34.3b/INR39.6b for FY20/21, considering the delay in RE capacity addition. Our PAT estimates are lowered by ~10%/7% to INR9.8b/INR12.3b for FY20/21 owing to a higher effective tax rate and marginally lower other income. We expect a PAT CAGR of ~17% over FY19-21, driven by a further AT&C loss reduction in franchisee, steady growth in regulated distribution, and doubling of RE capacity. TPW is well poised to capitalize on opportunities stemming from distribution privatization, the thrust on RE, and consolidation in the conventional generation sector given its execution track record, expertise and strong balance sheet. We revise our SOTP-based TP to INR300 (prior: INR315). Maintain Buy.
TPL has one of the best balance sheets in the private power sector. It is present across different segments of the sector, which provides it with a strong platform for future growth. In our view, the company is well poised to capitalize on opportunities stemming from distribution privatization, the thrust on RE, and consolidation in the conventional generation sector. We value the stock on an SOTP basis at INR315/share, implying an upside of 20%. The SOTP method does not capture any value for the shut gas capacity of 1.8GW. The stock trades attractively at ~1.2x FY21E P/BV. We initiate coverage on the stock with a Buy rating. Higher LNG prices and lower wind PLF, however, are the potential risk factors.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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