Tata Power Company Limited, a part of Tata Sons Limited headquartered in Mumbai, Maharashtra, is an integrated power utility engaged in the process of generating, transmitting, and distributing electricity. It supplies power to consumers in bulk which includes ports, railways, municipal corporations, and other major industries.
The company conducts business within India and, apart from domestic operations, it also has an operational presence overseas including countries such as Singapore, Russia, Bhutan, etc.
Stocks of Tata Power closed at Rs 202.70 showing a gain of around 1.3 percent in comparison to the previous closing price of Rs 200.15. The company has a market capitalization of Rs 64,769 crores.
Digging into the sequential financials of the company, the revenues went down from Rs 14,129 crores in Q3 v/s Rs 12,454 crores in Q4. On a contrasting note, the net profits showed a huge increase from Rs 54 crores to Rs 760 crores showing a change of around 1,307 percent.
Coming onto the profitability metrics, the return on equity (ROE) as well as return on capital employed (ROCE) went up with the former increasing from 7.64 percent during FY20-21 to 12.13 percent in FY21-22 and the latter moving from 8.99 percent to 10.13 percent keeping the timeframe the same.
Sharekhan gave a ‘Buy’ tag to the company with a target price of Rs 245 indicating an upside of 21 percent as compared to the closing price levels.
The debt-to-equity ratio of the company, though higher than the normal levels, has shown a reduction in recent financial years with a movement from 2.15 in FY20-21 to 2.12 in FY21-22.
According to the latest shareholding data available, promoters of the company hold a 46.86 percent stake, and Foreign Institutional Investors hold a 9.45 percent stake in the company.
Written by Amit Madnani
