Shares of Torrent Power surged to 4-month highs. Know why

Shares of Torrent Power Ltd., a mid-sized electricity provider, surged to 4-month highs after quarterly income jumped on the back of higher sales.

Torrent Power said its first quarter Net Profit leapt 285 percent to 309.2 crore rupees compared with 80 crore rupees in the same quarter a year ago. Sales during April-June rose 15.4 percent to 2,924 crore rupees from 2,532 crore rupees in the year ago period.

Torrent Power rose 4.9 percent, or 8 rupees, to 171.70 rupees, its highest since April 13, on the National Stock Exchange, where 12.81 lakh shares were traded by 10:25 am compared with the 5-day average of 5.77 lakh shares.

Torrent Power's market capitalisation has jumped 27 percent in the past one year to 7,736 crore rupees as investors bought into predictable earnings and revenue streams.

Image credit: Indiatimes