Stocks to Buy: Jefferies projects 14% upside for this power utility; check key triggers

Shares of Torrent Power Ltd., which ended Friday' session 1% higher, will be in focus on Monday, November 17, after global brokerage firm Jefferies initiated coverage on the stock with a bullish view.

Jefferies has initiated coverage with a 'Buy' rating and a price target of ₹1,485, which implies a potential upside of nearly 14% from Friday's closing price.

The brokerage said Torrent Power stands out among India's listed power utilities for its steady earnings growth, high return on equity (ROE) and relatively low debt levels.

According to Jefferies, roughly 60% of Torrent Power's EBITDA comes from its distribution business, which continues to grow at a steady 8% CAGR while maintaining a 16%+ ROE, supported by regulated returns and incentive structures.

The remaining 40% of EBITDA comes from the company's generation portfolio, which Jefferies expects to expand 1.6x (13% CAGR) over FY26E-30E.

This growth will be driven largely by Torrent Power's increasing focus on renewable energy (RE) projects, the brokerage wrote in its note.

Of the 11 analysts that have coverage on Torrent Power, three of them have a 'Buy' rating, which four each have a 'Hold' and a 'Sell' recommendation on the stock.

Shares of Torrent Power ended Friday's session 1% higher at ₹1,306.60. The stock is down nearly 13% so far in 2025, while over the last 12 months, it has declined nearly 18%.