Buy Tata Power Company; target of Rs 485: Sharekhan

Sharekhan's research report on Tata Power Company

Consolidated Adj. PAT of Rs. 1,031 crore was up 8.2% y-o-y led by Mundra UMPP benefit (Rs. 332 crore), good performance in the renewable business and lower tax rate. Standalone PAT increased 86% y-o-y, Solar EPC PAT rose 50% y-o-y and the 4.3 GW cell & module plant added to the profitability. Company intends to add 4-5GW of renewable capacities in the next two years.

Outlook

Tata Power has a well-planned strategy to shift towards clean energy and targets for 2.5x rise in its PAT by FY2030E over FY2024. We maintain a Buy on Tata Power with a revised PT of Rs. 485 on a SOTP basis