Torrent Power zooms 7%, nears record high on signing MoU with Gujarat govt – EQ
In Short : Torrent Power’s stock surged 7%, approaching a record high after the company signed a Memorandum of Understanding (MoU) with the Gujarat government. The deal involves developing renewable energy projects in the state, further strengthening Torrent Power’s position in the green energy sector. The company’s ongoing efforts in expanding its clean energy portfolio align with India’s renewable energy goals, driving investor optimism and boosting stock performance.
In Detail : Torrent Power share price today climbed 6.7 per cent to Rs 1,900.7 per share on the BSE in Tuesday’s intraday trade. The shares, however, pared gains later to trade just 1.2 per cent higher at Rs 1,801 per share at 1:20 PM. By comparison, the benchmark BSE Sensex was up 85 points (0.10 per cent).
With today’s rise, Torrent Power share price came within a striking range of its record high level of Rs 1,906.5, touched on July 31, 2024.
Meanwhile, the buying interest in Torrent Power shares came after the reaffirmed its commitment towards investment worth Rs 64,000 crore in green and sustainable projects.
At the 4th edition of RE-Invest at Gandhinagar, on Monday,Torrent Power submitted a ‘Shapath Patra’ to achieve 10 Gigawatt (Gw) of installed renewable energy (RE) capacity by 2030, with an investment of Rs 57,000 Crores. As part of these commitments, Torrent Power, on Monday, signed a Memorandum of Understanding (MoU) with the Government of Gujarat for execution of 5 Gw solar, wind or solar-wind hybrid project at Dwarka District.
Besides, a second ‘Shapath Patra’ was submitted to set up 1,00,000 Kilo Tonnes Per Annum (KTPA) Green Ammonia production facility with an investment of Rs 7,200 crore.
“By signing two ‘Shapath Patras’ we have reaffirmed our long-term commitment towards a green and sustainable future. This commitment not only underscores our dedication to advancing green energy solutions but also highlights the fact that our business operations are aligned with national priorities,” said Samir Mehta, chairman of Torrent Group.
Torrent Power has been commissioning and operating large infrastructure projects. With a strong balance sheet, the company aims to contribute significantly to the nation’s target of 500 Gw renewable capacity by 2030.
“Increased penetration of Solar and Wind in electricity generation will create a need for energy storage solutions for providing firm, reliable and dispatchable RE power. Torrent Power has identified Pumped Storage Project (PSP) sites in multiple states. The company has already announced that it intends to install about 5 to 8 Gw of PSP capacity entailing investment of Rs 25,000 to Rs 35,000 crore,” Torrent Power said in its stock exchange filing.
Torrent Power is one of the largest companies in the country’s power sector with presence across the entire power value chain – generation, transmission and distribution.
In the April-June quarter of the current financial year (Q1 FY25), Torrent Power’s consolidated net profit jumped 88 per cent year-on-year to Rs 972 crore, helped by surging power demand.
Its revenue from operations, meanwhile, rose 23.3 per cent Y-o-Y to Rs 9,034 crore.
