Tata Power's share rose 2 per cent to hit a new 52-week high of Rs 137.9 on BSE after the company announced its earnings for the quarter ended June 2021. However, it shed all its early gains and slipped in the red amid volatile trade.
The company reported a net profit of Rs 465.69 crore for the quarter ended June 2021. Profit in the year-ago period stood at Rs 268.10 crore. Total income grew 55 per cent to Rs 10,145.89 crore in the June-ended quarter against Rs 6,540.42 crore a year ago.
The stock opened 2 per cent higher at Rs 137.90 against the previous close of Rs 135.15. However, it declined 3 per cent to hit an intraday low of Rs 131.05 on BSE. Market cap of the firm fell to Rs 42,178.48 crore on BSE.
It has gained 165 per cent in the last one year and risen 74 per cent since the beginning of this year. The share stands higher than 10 day, 20 day, 50 day, 100 day, and 200 day moving averages and lower than 5 day moving averages.
Commenting on the Company’s performance, Dr. Praveer Sinha, CEO & Managing Director, Tata Power said, "We aim to scale up our renewable portfolio from the current 4GW to 15GW by 2025 and to 25GW by 2030 thereby achieving 80% clean generation capacity, up from the current 31%."
"We will continue to expand and promote the mass adoption of rooftop solar & solar pumps, microgrids, home automation and focus on developing the EV charging infrastructure in the country," he noted.
"We are happy to announce our re-entry into the development of greenfield Transmission Projects. Our partnership with the country’s leading T&D EPC player “Tata Projects” will make us a force to reckon with. This would further accelerate the momentum of “Power for All” initiative of the Government of India," he added.
"Divestment-related measures and infusion from the promoter have aided the debt reduction. Furthermore, the EPC and Renewables businesses are set to
gain momentum, led by a healthy project pipeline. The possible benefit from the merger of Coastal Gujarat Power Ltd (CGPL) with itself presents an
upside to profitability. We roll forward our valuation to Sep’23, with revised target price of Rs 156 per share. We maintain our Buy rating on the stock," said Motilal Oswal.
CLSA has a 'Buy' rating with a target price of Rs 160 per share. The brokerage house maintained a buy rating as repricing of debt and net long coal drove a solid Q1.
Sharekhan has a 'Buy' rating on the stock with a target price of Rs 165 per share. The brokerage firm said that the company's focus on business restructuring and balance sheet deleveraging plan would play a crucial role for a sustained improvement in earnings profile (high growth from RE and power distribution segments) and improve investor confidence.
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