Jefferies has a Buy rating on this power utility with 15% upside potential: Here is why

Jefferies has initiated coverage on Torrent Power with a Buy call and a target price of Rs 1,485, implying a 15% upside from current levels. The brokerage said the company stands out in India’s power sector because of its mix of steady distribution earnings, rising renewable capacity, and a balance sheet that carries far less leverage than peers.

According to Jefferies, Torrent Power’s model is unusual among listed utilities. About 60% of its EBITDA comes from distribution, where returns are stable and regulated, while the remaining 40% comes from power generation, a segment that is set to expand sharply through renewables. Jefferies expects generation EBITDA to rise 1.6 times over FY26 to FY30.