Tata Power’s Stock Rises 21% In 4 days On Heavy Volume, Set The New High
Tata Power shares hit a new intra-day high of Rs 287.90 on the BSE on Wednesday, up 5% in an otherwise sluggish market, with strong activity on improving the business outlook. On the other hand, the S&P BSE Sensex was down 0.7 percent at 59,742.
Tata Group’s electric utility company’s shares have risen 21% in four trading days. It exceeded its previous high of Rs 269.70 recorded on Tuesday, October 19, 2021. The counter’s trading volume almost doubled, with 69 million equity shares changing hands on the NSE and BSE until 09:50 a.m.
Tata Power is primarily focused on renewables, transmission, and distribution and customer-centric companies such as solar rooftops, solar pumps, microgrids, electric vehicle (EV) charging, energy services, home automation, and floating solar. In most renewable energy areas in the country, the company is a market leader. For example, it is the industry leader in rooftop solar installations, solar water pumps, and the rapidly increasing electric vehicle charging stations market in India.
Tata Power’s combined net profit for the October-December quarter (Q3FY22) increased by 74% year on year (YoY) to Rs 552 crore from Rs 318 crore in Q3FY21, due to excellent all-round business performance across all sectors.
Due to expanded operations in Odisha DISCOMs, higher project execution by Tata Power Solar Systems, and outstanding performance across the board, the company’s consolidated revenue increased by 42% to Rs 11,015 crore from Rs 7,756 crore in Q3 FY21.
Tata Power is on target with its well-defined ESG framework/goals and execution. Solar/wind generation capacity, regulated electricity transmission/distribution, and new ESG-positive companies such as EV charging, solar microgrids, rooftop solar, and solar EPC are all part of the company’s growth strategy. According to a recent analysis by JP Morgan, regulated enterprises produce consistent earnings and cash flow.
According to the brokerage firm, the continuous improvement in operating cash flow is likely to cover the equity requirement for growth Capex and potential asset monetization, including both non-core and value unlocking in renewables.