Business · India Bureau
Torrent Power shares plunge to 31-month low amid broad market selloff
Torrent Power's stock has declined 35% from its April peak, touching its lowest level in nearly three years. Motilal Oswal Financial Services has initiated coverage on the power generation company with a cautious stance.
LSN India ·
Torrent Power shares have experienced a significant correction, falling to a 31-month low as investor sentiment around the utility sector remains subdued. The sharp decline of 35% from April highs reflects broader concerns about the company's near-term prospects and valuation.
Motilal Oswal Financial Services, in initiating research coverage of the firm, assigned a Neutral rating to the stock. The brokerage has pegged a sum-of-the-parts valuation-based target price of ₹1,270 per share, suggesting limited upside from current trading levels.
The power utility operates generation and distribution assets across India. The sector has faced headwinds from rising input costs, regulatory pressures, and concerns over demand growth recovery in the post-pandemic period.
Investors have grown cautious on power stocks amid macroeconomic uncertainties. Torrent Power's sharp underperformance underscores the challenges facing even established players in India's power generation and distribution landscape.