SP Tulsian of sptulsian.com is negative on Tata Power .
Tulsian told CNBC-TV18, "I have been holding my strong negative view on Tata Power. If you see in their Q2 results they have provided imperative loss of about Rs 850 crore and if you take today's Adani Power results I think it is really very scary. That indicates that the new capacity which will be going operational will have to face the brunt of huge raw material cost because you have not seen anything negative in Adani Power because Adani Power is the only company which has been at a frequent interval increasing the capacity because by March 31, they will be having the capacity of 6000 megawatt of the operational or the generation capacity. They are not into the ultra mega power projects but 6,000 capacity is a very big capacity."
He further added, "Take the case of Mundra, 3960 megawatt so obviously since the company will be commencing it just recently and the kind of run up which we have seen in Tata Power- stocks has moved from Rs 90 to about Rs 118-120 maybe a couple of days back I do not think that these kind of things are really warranted, they are not affected for their existing operations but what about the capacity which is much more than the aggregate capacity they have been in whole of their life. So I am maintaining very negative view on the new capacity which is going operational which is the case in Tata Power they are going operational with their ultra mega power projects at Mundra."
