Buy Tata Power Company; target of Rs 485: Sharekhan

Sharekhan's research report on Tata Power Company

Consolidated Adj. PAT of Rs. 1,025 crore was up 14.5% y-o-y led by good performance of generation business, cell & module plant, Odisha discoms and lower tax rate. Standalone PAT of Rs. 409 crore was down 52% y-o-y because of lower other income of Rs. 207 crore (down 70% y-o-y). Company intends to add 5.5 GW 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 an unchanged PT of Rs. 485 on a SOTP basis.

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