TORRENT POWER LTD Valuation

TORNTPOWER · Power · Current price ₹1,264.5

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DocStoX fair value
₹857
low confidence
Current price
₹1,265
Upside
-32.2%
P/E ratio
26.4x
P/B ratio
3.7x
Verdict
Expensive
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Is TORRENT POWER LTD undervalued?

DocStoX estimates the fair value of TORRENT POWER LTD at ₹857 per share, versus the current market price of ₹1,265. That puts the stock about -32.2% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 4 independent methods: Residual income (₹378), Relative P/E (₹1,539), Graham floor (₹639), Analyst target (₹1,462). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹378 (bear) to ₹857 (base) to ₹1,539 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

TORRENT POWER LTD trades at a P/E of 26.4x and a P/B of 3.7x, with a dividend yield of 1.6%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on TORRENT POWER LTD

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.