Multibagger power stock hits record high peak on massive Rs 1,680 crore order

A total of 1.51 lakh shares were traded, resulting in a turnover of Rs 29.36 crore on the BSE. The company's market capitalisation rose to Rs 92,624 crore following the surge in its stock price.

In Short

• Shares surge 9.16% to Rs 1983.70 on BSE
• Market cap rises to Rs 92,624 crore
• Stock up 166% in 12 months, 104% in 2024

Shares of Torrent Power Ltd surged to a new all-time high on Wednesday after the company secured a major contract from the Maharashtra State Electricity Distribution Company (MSEDCL). The deal, worth Rs 1,680 crore, involves the long-term supply of 2,000 megawatts (MW) of energy storage capacity from Torrent’s pumped hydro storage plant connected to the inter-state transmission system (InSTS). The contract has a tenure of 40 years, ensuring a steady stream of business for the company.

The energy needed to charge the storage plant will be supplied by MSEDCL, further strengthening Torrent Power's position in India’s energy sector.

Following the news, Torrent Power shares jumped by 9.16% to reach a record high of Rs 1983.70 on the Bombay Stock Exchange (BSE), compared to its previous close of Rs 1817.15. The stock opened strong at Rs 1922.95 and continued to climb throughout the day.

A total of 1.51 lakh shares were traded, resulting in a turnover of Rs 29.36 crore on the BSE. The company’s market capitalisation rose to Rs 92,624 crore following the surge in its stock price.

Torrent Power’s stock has been on an upward trajectory for the past year. The stock is currently trading higher than its 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained investor confidence. Over the last 12 months, Torrent Power has gained 166%. In 2024 alone, the stock has surged 104%. In the past five years, the stock has delivered multibagger returns of 581%, making it one of the most attractive stocks in the Indian power sector.

The stock hit its 52-week low of Rs 692 on October 26, 2023, and has since seen a dramatic recovery.

The Rs 1,680-crore contract secured by Torrent Power covers the supply of 2,000 MW of energy storage capacity. The company has received two letters of award from MSEDCL on October 7, 2024. The first letter is for 500 MW of energy storage capacity and an additional 1,000 MW under the Greenshoe option. The second letter awards Torrent Power an extra 500 MW under the same Greenshoe option.

The total energy storage capacity of 2,000 MW is expected to be fully operational within 48 months from the signing of the Energy Storage Facility Agreement.

Torrent Power commented on the award, saying, “We would like to inform you that the company has received two Letters of Award from MSEDCL on October 7, 2024. This is for (1) procurement of 500 MW energy storage capacity, and (2) additional 1,500 MW under the Greenshoe Option from the InSTS-connected Pumped Hydro Storage Plant.”

The company expressed confidence that this large order will strengthen its position in the renewable energy sector and support its long-term growth plans.

Torrent Power Ltd, part of the Torrent Group, is a leading player in India’s power sector. The company operates across the entire power value chain, which includes generation, transmission, and distribution of electricity.