Torrent hits `1 lakh-cr mcap mark

New Delhi India’s leading diversified business conglomerate Torrent Group has crossed Rs1 lakh crore market capitalisation (mcap) as it’s power units EV push and pharma company’s recent acquisitions fuelled a rally in stocks.

The combined market capitalisation of its two listed group companies - Torrent Pharmaceuticals Ltd and Torrent Power Ltd crossed the Rs1 lakh crore mark in trading on Monday, according to stock exchange information. Torrent Pharmaceuticals shares hit an intra-day high of Rs2,014.8 before closing at Rs2,010 on the NSE. This gave it a market capitalisation of over Rs68,000 crore. The shares of Torrent Power hit an intraday high of Rs682 before closing at Rs678.20, giving it a market capitalisation of Rs about Rs32,600 crore.

The combined market capitalisation of the Group now stands at Rs1,00,600 crore. The Group’s valuation hit Rs50,000 crore in February 2020. This shows 2x growth in market capitalisation in the past three years - driven by robust financial performance, sustained growth trajectory and expansions in business and new geographies, market insiders believed.

The two group companies have outperformed the broader market in the past three years as the benchmark index BSE Sensex has gained from 39,872 points in February 2020 to 66,527 points (up 66 per cent) on Monday, while the 50-stock NSE Nifty50 index has moved from 11,707 points in February 2020 to 19,753 points (up 68 per cent) now.

According to trader sources, both the Torrent Group companies have exhibited strong financial performance over the years accompanied by robust business expansion. Last week, Torrent Power announced its foray into electric vehicle charging infrastructure space by launching four such stations in Ahmedabad. It now plans to open a few more in Surat and other cities. On the operational front, Torrent Power’s total generation capacities have increased by over 26 per cent in the past three years from 3,879 Megawatts (MW) (combined for gas, coal and renewable assets) as of March 2020 to 4,160 MW till March 2023.

In the distribution business, the company provides electricity to over 4 million customers across its five licensed distribution territories and three franchised distribution territories in Gujarat, Maharashtra, Uttar Pradesh and the Union Territory of Dadra & Nagar Haveli and Daman & Diu. Torrent Power has a total of 2,035 sq km of distribution operation areas and 482 km of transmission lines.