Hold Tata Power; target of Rs 83: Axis Direct

Axis Direct recommended hold rating on Tata Power with a target price of Rs 83 in its research report dated February 17, 2017.

February 20, 2017 / 16:19 IST

live

bselive
nselive

Volume

Todays L/H

Axis Direct's research report on Tata Power

Q3FY17 adjusted PAT at Rs 6.5 bn was driven by Coal mining vertical (EBITDA of Rs 8 bn; up 30% QoQ on account of 18% increase in realization). However, higher coal cost dented profitability of Mundra (Rs 0.3 bn EBITDA vs. Rs 2.8 bn in Q2).

Outlook

Major one-offs in Q3 were exchange loss of Rs 2.1 bn, tax reversal of Rs 1.8 bn and revaluation of some unquoted investments (Rs 0.4 bn). We adjust the same in our calculation of adjusted PAT. We marginally change our estimates in line with 9MFY17 and maintain our TP (Rs 83). Post the run up in stock price, we now have a HOLD rating (BUY earlier).

For all recommendations, 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.

first published: Feb 20, 2017 04:19 pm

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!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347