- Stock Broker’s Share Khan and Anand Rathi have given a buy rating.
- The Sensex has gained 7939.27 points since last year, or it has grown by 15.96%
- While Tata Power has gained a whopping 149.50% considering Monday’s closing price, for the same period.
- Its consolidated revenue went up by 42% to ₹11,015 crores from ₹7,756 crores a year ago. Its EBITDA was up by 16% by ₹2499 crores.
Tata Power Company Ltd. shares closed at ₹224.80, down by 0.95%, on Monday. Equity Benchmark Sensex closed 149.38 points lower.
In this year’s budget, Financial Minister Nirmala Sitharaman allocated an additional ₹219500 crores in PLI incentives to manufacture solar modules, proposed to replace the existing safeguard duty with basic custom duty on solar cells and solar modules and proposed to issue “green bonds” for mobilising resources for setting up green infrastructure projects in the public sector. Analysts expect that these signs are positive for solar manufacturers.
The Sensex has gained 7939.27 points since last year, or it has grown by 15.96%, while Tata Power has gained a whopping 149.50% considering Monday’s closing price, for the same period.
The stock’s 52-week high price is ₹267.85 and its 52-week low price is ₹89.00, therefore it is closer to its 52-week high price. This rise can be attributed to its investment in EV charging stations, solar infrastructure and other expansions, as per experts.
What do the experts have to say?
“With a focus on sustainable and clean energy development, the company has a stated target of going net carbon zero by 2050, as it looks to rapidly increase its green energy portfolio,” said brokerage house Anand Rathi in a note. They added that they expect the company’s performance to improve from the current levels and have upgraded its rating to Buy with an upward revision in its price target to ₹273 per share.
“Sustained near-term high coal prices, higher execution/margin improvement at solar EPC business and expectation of sustained improvement in financial at Odisha discoms makes us confident on the company’s long-term earnings growth potential (expect 36% PAT CAGR over FY21-24E),” said Sharekhan
“In addition, management’s business restructuring plans to increase share of high growth RE business would drive sustained improvement in ESG score and RE portfolio monetisation to help unlock value. Hence, we maintain Buy on Tata Power with a revised PT of Rs. 275 (reflecting higher value for solar EPC and Odisha discoms). At CMP, the stock is trading at 2.9x/2.6x FY23E/ FY24E P/BV.” it added.
Financials
It is a large-cap stock with a market cap of ₹71,879 Crores. It posted a consolidated net profit of ₹552 crores in Q3FY22, up by 74% from ₹318 crores during the same period last year. Its consolidated revenue went up by 42% to ₹11,015 crores from ₹7,756 crores a year ago. Its EBITDA was up by 16% by ₹2499 crores.
Shareholding pattern
The promoters holding has remained the same for the last four quarters, at 48.86%, FII’s have decreased their goldings from 11.06% to 10.84%, DIIs have also decreased their holdings from 19.9% to 15.57%, other investors have increased their holdings from 22.18% to 26.73%.
About Tata Power
Tata Power is one of India’s largest integrated power companies involved in the business of the generation, transmission and distribution of electricity. It manufactures solar roofs as well and plans to build 1 lakh ev stations by 2025.
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