The Torrent Power share zoomed more than 21 percent on November 29 morning to hit a new high of Rs 1,004 on the National Stock Exchange (NSE) on heavy volumes.
A total of 34 lakh shares changed hands on NSE and BSE combined, compared to the one-week average volume of 6 lakh. The stock has risen 22 percent in the last five sessions.
At 11.09 am, Torrent Power was trading at Rs 956 on the NSE, up 13 percent from the previous close. The counter has gained 93 percent this year, outperforming the benchmark Nifty was by a mile, which has risen around 10 percent during the time.
Healthy licence-based power distribution operations with an impressive reduction in transmission & distribution (T&D) losses bode well for Torrent Power, analysts said. Growing energy demand presents challenges as well as opportunities to Torrent Power, they said.
The government’s capital investment focus to address demand growth is crucial and Torrent Power is well-prepared to benefit from this transition, with its strong thermal generation business, recent success in securing merchant power tenders, and solid financial position, poised for growth in the energy sector, analysts have said.
Power stocks gain
Torrent Power was not the only stock in the power sector to rise on November 29. Tata Power Company, too, gained a percent. The rise came a day after Tata Power Renewable Energy Limited (TPREL), a subsidiary of the company, was awarded the job of developing a 200 MW firm and dispatchable renewable energy (FDRE) project with SJVN.
The plant has been sized with a hybrid combination of solar, wind, and battery storage of appropriate capacities, the company said.
Shares of Adani Power jumped nearly 1.5 percent after the firm said its power plant in Mundra would co-fire up to 20 percent green ammonia in the boiler of a conventional coal-fired 330MW unit.
Adani Power is collaborating with IHI Corporation and Kowa Corporation to decarbonise its thermal power plants, starting with the 4,620 MW Mundra power plant.