Morgan Stanley has maintained its ‘Overweight’ rating on Torrent Power with a target price of ₹2,268, suggesting a 24.8% upside from the current market price of ₹1,817.95. The brokerage highlights Torrent Power’s recent contract win from the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for a 40-year energy storage project.
The plant is expected to be commissioned within 48 months from the signing of the Energy Storage Facility Agreement. Torrent Power estimates an annual revenue of ₹1,680 crore from the project, which could generate an equity internal rate of return (IRR) of 15%, assuming a capital expenditure of ₹5 crore per MW and an 80/20 debt-to-equity ratio.
Morgan Stanley’s positive outlook is based on the long-term contract, promising revenue visibility, and the projected returns, making Torrent Power an attractive investment opportunity in the energy sector.
Disclaimer: This information is for informational purposes only and should not be considered as investment advice.