Motilal Oswal initiated coverage on Torrent Power with a rating of “Buy” after considering it as the best play in the private power sector with strong industry positioning and a healthy balance sheet. The brokerage has a price target of Rs 315 per share, according to a March 19 note.
Torrent Power has a diversified portfolio with distribution and generation of electricity. However, its regulated distribution business is among the most efficient business in India. TPL’s renewable energy capacity is likely to double in two years to 1.4 GW, said Motilal Oswal.
According to the research report, TPL’s growth is back on track, with its ever-improving distribution franchise performance, privatization of electricity distribution and doubling of RE capacity has bolstered the growth prospects. Read More