Shares of Torrent Power Ltd. hit a 5% upper circuit after the company bagged an order worth Rs 2,700 crore from Railway Energy Management Co. to set up a renewable energy power plant.
The energy and power company received a letter of award from REMC for setting up a grid-connected renewable energy power plant project, with or without storage, according to an exchange filing on Friday. The power plant will supply 100 MW of round-the-clock power in Maharashtra.
The Rs 2,700 crore project will be commissioned within 24 months after the signing of the power purchase agreement. It will have a contract period of 25 years after the agreement is signed. The tariff is at Rs 4.25 per Kwh, the company said.
Torrent Power stock rose as much as 5% during the day to hit an upper circuit of Rs 1,172.05 apiece on the NSE. It was trading 3.92% higher at Rs 1160 apiece, compared to a 0.25% advance in the benchmark Nifty 50 as of 10:00 a.m.
It has risen 124.98% in the last 12 months. The total traded volume so far in the day stood at 0.4times its 30-day average. The relative strength index was at 57.6.
Three out of the 11 analysts tracking Torrent Power have a 'buy' rating on the stock, as many as two recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential decline of 16.3%.
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