BackTata Power shares: Anand Rathi has 'Buy' rating with revised target price
The multibagger stock has rallied more than 153% in a year's period, rising from around ₹90 per share level in February 2021
PremiumTata Power is one of India’s largest integrated power companies and together with its subsidiaries and jointly controlled entities, has an installed/managed capacity of 13,171 MW. The company's consolidated net profit rose 71% to ₹426 crore for the third quarter from ₹248 crore reported in corresponding period of the last year.
“With a focus on sustainable and clean energy development, company has a stated target of going net carbon zero by 2050, as it looks to rapidly increase its green energy portfolio," highlighted brokerage house Anand Rathi in a note.
With rapidly growing generation capacity at its disposal, strengthened focus on EV and renewables businesses, it expects the company's performance to improve from current levels. The brokerage has upgraded its rating on the Tata Power stock to Buy with a revised target price of ₹273 per share.
The company has participated in the PLI Scheme floated by the government to boost domestic solar manufacturing and, thus, expects an incentive of approx Rs. 15 billion against this Capex. It is also strengthening its EV charging segment by signing MoUs with TVS Motors, Apollo Tyres and many auto companies to deploy charging stations.
It offers EV charging solutions across all segments, including home charging, public charging, workplace charging, and captive charging.
The Tata Group company's revenue from operations increased by 44% to ₹10,913 crore during the reporting period as compared to ₹7,597 crore in the same quarter last year. The growth was on account of expanded operation in Odisha DISCOMs, higher project execution by Tata Power Solar Systems Ltd. (TPSSL), and strong performance of all other businesses.
The multibagger stock has rallied more than 153% in a year's period, rising from around ₹90 per share level in February 2021. The stock is up 76% in the last six months whereas has risen about 3% in 2022 (year-to-date or YTD) so far.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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