Shares of Torrent Power Ltd. surged to a record high on Wednesday after it agreed to develop three pumped storage hydro projects in Maharashtra.
The company signed a Memorandum of Understanding with the government of Maharashtra for the development of three pumped storage hydro projects of 5,700 MW capacity. The projects will entail an investment of about Rs 27,000 crore and will provide employment to approximately 13,500 people during the construction period. Torrent intends to execute these projects over a period of five years, according to an exchange filing.
The projects will be executed at three sites—Karjat in Raigarh district, as well as Maval and Junnar in Pune district. These projects are planned to provide a minimum of six hours of energy storage on a daily basis.
"Pumped storage hydro is an established, proven, and cost-effective technology for longer-duration storage solutions," the company said in the filing. The company is strategically entering the storage space to fulfill the void left in the grid by intermittent renewable power.
Shares of Torrent Power rose 6.63% to Rs 652.8 apiece on Wednesday, as compared to a 0.28% advance in the benchmark Nifty 50 as of 10.10 a.m. The stock rose as much as 9.76% intraday, the most in 16 weeks since Feb. 15.
The total traded volume stood at 61.1 times its 30-day average. The relative strength index was at 82, implying that the stock may be overbought.
Out of the 11 analysts tracking the company, five maintain a 'buy' rating, four recommend a 'hold,' and two suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a downside of 18.1%.
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