The share price of Tata Power was reported in the late 2000s, as investors who own more than 10 years of market experience would be aware. However, after the 2008 market meltdown, investors lost interest in Tata Power shares. Over a decade, the Tata Power share price fluctuated between Rs. 70 and Rs. 130.
The business has been working on fresh growth ideas since 2020. Tata Power’s stake has more than quadrupled during the past 18 months. Tata Power gave its investors returns of more than 10% in 2022.
Q1FY23 Quarterly Result
· Tata Power achieved significant growth with a 90% YoY rise in consolidated PAT at Rs 884 crore and a 48% YoY increase in revenue at Rs 14,776 crore in the first quarter of FY23.
· Commissioned 600 MW large-scale EPC projects and won 1.7 GW projects in the first quarter of FY23, with a solid Solar EPC order book of Rs. 14,626 crores.
· They agreed in writing with the Tamil Nadu state government to spend Rs 3,000 crore on constructing a 4 GW solar cell and module plant.
· Kerala, India’s largest floating solar power plant, with a commissioning capacity of 101.6 MWp.
· Odisha Discoms, keep up their excellent work. The rollout of the installation of smart meters throughout all Discoms.
· Green mobility is supported by a network of 2,350 public and semi-public EV chargers, with an additional 1,400 chargers under construction. In addition, 18,500 private home chargers and 240 bus charging stations were constructed throughout India. Consequently, we’ll be able to continue to rank among the top EV charging infrastructure suppliers in the country.
· Plans to spend a combined Rs. 14,000 crores in FY23 (with Rs. 10,000 crores in renewables)
· Consolidated PAT before exceptional items grew by 90% from Q1FY22 to Q1FY24, going from Rs. 466 crores to Rs. 884 crores.
· Tata Power is also in the most excellent position to gain from India’s ambition to reach 500GW of renewable energy generation by 2030.
· The company announced that a partnership supported by BlackRock and Mubadala would receive a 10.53% interest in Tata Power’s renewable energy unit.
Conclusion
The Tata Power share price has been downgraded to HOLD by the brokerage companies, with a target price of Rs 250 per share. According to experts, Tata Power 2.0’s three pillars—resilience, sustainability, and customer focus—are evident in its deeds. The short-term low profitability of new firms is made worse by sudden market shifts, such as commodity/forex inflation. Meanwhile, once things return to normal and a critical mass is reached, this might begin to zoom.
