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Torrent PowerNSE:TORNTPOWER +1.93%86 Return-on-Tangible-Asset is 5.76% as of Jun. 2026, which is 11% above its 10-year median of 5.18. GuruFocus rates NSE:TORNTPOWER with a GF Score™ of 86/100 and a GF Value™ of ₹1,397.57 (Fairly Valued). The stock has 5 warning signs investors should review. Among 454 Utilities - Independent Power Producers companies, Torrent Power ranks better than 81.28% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Torrent Power's annualizedNet Income for the quarter that ended in Jun. 2026 was ₹25,554 Mil. Torrent Power's average total tangible assets for the quarter that ended in Jun. 2026 was ₹443,653 Mil. Therefore, Torrent Power's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 5.76%.
The historical rank and industry rank for Torrent Power's Return-on-Tangible-Asset or its related term are showing as below:
NSE:TORNTPOWER'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.88 Med: 5.18 Max: 8.76
Current: 5.83
During the past 13 years, Torrent Power's highest Return-on-Tangible-Asset was 8.76%. The lowest was 1.88%. And the median was 5.18%.
NSE:TORNTPOWER's Return-on-Tangible-Asset is ranked better than 81.28% of 454
companies
in the Utilities - Independent Power Producers industry
Industry Median: 1.18
vs NSE:TORNTPOWER: 5.83
Torrent Power (NSE:TORNTPOWER) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Torrent Power Return-on-Tangible-Asset Related Terms
Torrent Power Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Torrent Power's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:TORNTPOWER vs CEG, VST, NRG: Return-on-Tangible-Asset Comparison
For the Utilities - Independent Power Producers subindustry, Torrent Power's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Torrent Power Return-on-Tangible-Asset vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Torrent Power's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Torrent Power's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.76% mean?
Torrent Power (NSE:TORNTPOWER) has a Return-on-Tangible-Asset of 5.76% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Torrent Power and its competitors. This is 11% above median its historical median of 5.18. Over the past decade, Torrent Power's Return-on-Tangible-Asset has ranged from 1.88 to 8.76. According to the industry distribution chart, Torrent Power ranks #85 out of 454 companies in the Utilities - Independent Power Producers industry, placing it in the top 18.7%.
Is Torrent Power's Return-on-Tangible-Asset too high?
Torrent Power's current Return-on-Tangible-Asset of 5.76% is 11% above median its 10-year median of 5.18. Over the past 10 years, this metric has ranged from a low of 1.88 to a high of 8.76. The Utilities - Independent Power Producers industry median Return-on-Tangible-Asset is 1.18. Torrent Power's value of 5.76% is 388.1% above this industry median. Based on the distribution chart, Torrent Power ranks #85 out of 454 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Torrent Power has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Torrent Power's Return-on-Tangible-Asset compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Torrent Power ranks #85 out of 454 companies for Return-on-Tangible-Asset. This places Torrent Power in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.18. Torrent Power's value of 5.76% is 388.1% above this benchmark. Historically, Torrent Power's own Return-on-Tangible-Asset has ranged from 1.88 to 8.76 over the past decade. While the company's 10-year median is 5.18 vs. the industry median of 1.18, Torrent Power has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Asset among Utilities - Independent Power Producers companies is 1.18, based on 454 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Torrent Power's current Return-on-Tangible-Asset of 5.76% is 388.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Torrent Power and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Asset is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Torrent Power's current Return-on-Tangible-Asset is 5.76%, which is 11% above median its own 10-year median of 5.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Torrent Power stock overvalued right now?
Based on GuruFocus' analysis, Torrent Power (NSE:TORNTPOWER) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,397.57, compared to a current price of ₹1,350.80 — trading 3.3% below its estimated fair value. The current Return-on-Tangible-Asset is 5.76%, which is 11% above median its 10-year median of 5.18 and 388.1% above the Utilities - Independent Power Producers industry median of 1.18. Torrent Power's overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Torrent Power (NSE:TORNTPOWER), the current Return-on-Tangible-Asset is 5.76% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Torrent Power (NSE:TORNTPOWER) Overvalued in 2026?
Based on GuruFocus' analysis, Torrent Power stock appears to be undervalued.
The current stock price of ₹1,350.80 is trading 3.3% below its estimated GF Value™ of ₹1,397.57.
GuruFocus considers Torrent Power to be Fairly Valued.
Key valuation signals for NSE:TORNTPOWER:
Return-on-Tangible-Asset: 5.76% (11% above median its 10-year median of 5.18)
GF Value™: ₹1,397.57 vs. price of ₹1,350.80 (3.3% below fair value)
Industry Position: 388.1% above the Utilities - Independent Power Producers median (#85 of 454)
No single metric tells the full story. See the NSE:TORNTPOWER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Torrent Power Ltd is an Indian utility company engaged in the business of power generation, transmission, and distribution. Both by itself and through its subsidiaries, Torrent Power operates a portfolio of gas, combined cycle, coal, wind, and solar power plants. The group's reportable segments are: Generation, Transmission and Distribution, and Renewables. The majority of its revenue is generated from the Transmission and Distribution segment, which comprises transmission and distribution business (licensed and franchisee) and related ancillary services. The Generation segment includes the generation of power from thermal sources (gas and coal) and trading of Regassified Liquified Natural Gas, and the Renewables segment includes generation of power from renewable energy sources.
86GF Score
Get the complete analysis for NSE:TORNTPOWER
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