Sharekhan's research report on Tata Power Company
Q2 consolidated Adj. PAT of Rs. 1,067 crore was up 22% y-o-y (adjusted for one off items). Delhi Discom had a PAT of Rs. 297 crore (+178% y-o-y) due to a favorable tariff order impact. Also, there was the benefit of higher other income and good performance in the renewables segment. Tata Power reported a revenue of Rs. 15,698 crore, flat y-o-y. The revenue was affected by the weak power demand in the quarter due to the strong monsoon season. Company intends to add 5GW of renewable capacities in the next three years. Management sees large opportunity (more than 1cr installations) from rooftop solar supported by government for rooftop installations for 1 crore homes. The recently commissioned 4.3GW solar cell & module plant would also benefit from rooftop solar opportunity.
Outlook
Tata Power has a well-planned strategy to shift towards clean energy and targets for 2x rise in its PAT by FY2027E over FY2023. We maintain a Buy on Tata Power with an unchanged PT of Rs. 540 on an SOTP basis.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
