Tata Power's fourth quarter revenues are expected to rise 30 percent year-on-year and net profits are seen falling 3 percent, according to the average of the estimates of five brokerages. The numbers will be announced on May 8. Revenues are seen at Rs 16,271 crore and net profit at Rs 909 crore.
Many analysts are positive on the company because of the bullish outlook on power demand.
Also read: Tata Power soars to record high; becomes 6th Tata group firm to cross Rs 1 lakh cr m-cap
In a January 2024 report, analysts at Antique had estimated that going ahead, Tata Power could outperform its sector because of three reasons - "it continues to break even because its share in coal profits is adjusted against tariff; Consolidated RE can deliver Rs 10,000 crore EBITDA by FY2027 as against Rs 3,400 crore in FY2024E; and the lowest capital outlay/MW for pumped hydro entails higher platform valuation."
In a February 2024 report, JM Financial analysts had estimated that the company’s strategy that involved tapping high-margin group captive RE opportunities, venturing into brownfield pumped hydro storage, expanding transmission business beyond distribution, and visible resolution of the Mundra issue would position the company for accelerated growth.
Recently, the company's CEO and MD Praveer Sinha told Moneycontrol that the company will have 50.7 percent of its total installed capacity from green energy sources by FY2026. "Currently, our clean energy portfolio is 5,500 MW. We have another 3,700 MW of renewable projects (solar and wind) which are under implementation. With this, our clean and green energy capacity will reach at least 9,200 MW " Sinha said.
The Tata Power stock has gained over 123 percent in the last one year , and are currently trading at a trailing price earning multiple of 40.70 against a sector PE of 27.64.
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