Torrent Power Shares Dip After Morgan Stanley Downgrade

's shares fell by as much as 4.2% to ₹1,292 on February 11th following a downgrade by Morgan Stanley from "overweight" to "equal-weight." The brokerage also lowered its target price for the stock to ₹1,413, citing bleak growth prospects. This new target price represents a marginal upside of just 4.8% from the previous close. Despite the downgrade, Morgan Stanley remains optimistic about the overall power sector, anticipating a recovery in demand from Q2FY26 onwards, driven by industrial and consumer segments. They also see attractive valuations in the sector due to a recent correction caused by a slowdown in demand. In its Q3FY25 results, Torrent Power reported a 2.1% YoY increase in revenue to ₹6,499 crore and a 31% YoY surge in net profit to ₹489 crore. 1 The company's EBITDA also rose by 6.5% YoY to ₹1,111 crore, with EBITDA margins expanding by 60 bps to 17%. 2