To make it clear, you cannot sink all ships with one torpedo with this mod. Doing so with one for any ship is a hit or miss kind of thing. And the bigger the ship less chance of one torpedo putting it down.
I'd use this mod in conjunction with the Critical Hits 1.1 torpedo
or 1.2 mods. The One Torpedo and Critical Hit mods together seem to me to work the best.
Now to also note that I have sunk a Renoun Class Battleship with one torpedo. It must have hit the sweet spot.... ammunitions bunker. And also note that it took me 4 torpedos to sink an aircraft carrier and some lesser merchant ships.
So be prepared to use more than one torpedo. If you think you need more use them. But if you think you can take on a merchant, tanker, or troop carrier after nailing them with one torpedo and want to use the deckgun then do so. But only if you know they're unarmed or you can put them down before they do you. Besides, the deckgun is a good way to save your torpedos. It's all a crap shoot.