Shares of Tata Power Company Limited rallied 4.20% on Wednesday’s early trades and have changed 9,38,20,764 hands on the counter so far. The stock opened at ₹ 275.95 on the NSE and touched a fresh record high of ₹287.90 apiece on the BSE, due to heavy volume on improved business outlook.
The share price of Tata Power increased by 31.22% in the last month, and by 18.03% in the last week. This means that if an investor would have invested ₹1,00,000 a week ago, the value of their holdings would be ₹1,18,030 today. Similarly, if they would have invested ₹1,00,000 a month ago, the value of their holdings would have been ₹1,31,220 today. It is a multibagger stock as well which has given 174% returns in a year.
Some of the recent events that may have led to a spike in its share price include:
- The National Company Law Tribunal (NCLT) recently approved the merger of Coastal Gujarat Power Limited (CGPL) and Tata Power and their respective shareholders.
- The company’s arm Tata Power Renewables has commissioned a 300MW solar plant in Dholera, Gujarat, which is India’s largest single-axis solar tracker system. This power plant will generate 774 million units annually and will reduce carbon emissions by 704340 MT/year.
The company’s main focus is on renewables, transmission and distribution, as well as customer-centric businesses of solar rooftops, solar pumps, microgrids, electric vehicle (EV) charging, energy services, home automation, and floating solar among others.
It is a leader in many renewable energy segments in India. It has a dominant position in the growing EV charging stations market in India.
Its well defined ESG framework/goals and execution are on track. Solar/wind generation capacity, regulated electricity transmission/distribution and new ESG-positive businesses such as EV charging, solar microgrids, rooftop solar and solar EPC are a few areas where the company’s growth focus is rooted, according to a report by JP Morgan.
The brokerage said that there is a steady improvement in its operating cash flow which is likely to fund the equity requirement for growth Capex along with potential asset monetization, i.e. both non-core and value unlocking in renewable.
This large-cap company had a market capitalization of ₹87,424 crores at the time of writing this report. It reported consolidated net sales of ₹11018.73 crores for the quarter ended December 31, 2021, up 43.05% during the same period a year ago. Its net profit stood at ₹425.81 crores, up 71.55% from the corresponding period last year.
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