Low PE High ROE multibagger stock: This power company receives an order worth Rs 1,755 crore!

The stock has a PE of 10.96x and an ROE of 41.22 per cent multibagger returns of over 451 per cent in just 3 years.

Tata Power Solar Systems Limited (TPSSL), a wholly owned subsidiary of Tata Power Renewable Energy Limited (TPREL) has received the 'Letter of Award' (LoA) of Rs 1,755 crore for setting up a 300mw domestic content requirement (DCR) based EPC project for NLC India Limited (NLCIL), formerly called Neyveli Lignite Corporation Limited, as part of the CPSU scheme. The project, located at Barsingar in Bikaner District, Rajasthan, is expected to generate more than 750 Mn. units and reduce 6 lakh tons of CO2 annually.  

TPSSL will also do the operation and maintenance of the project for 3 years after the commercial operation declaration (COD). With this win, its total portfolio will touch 11.5GWp and the total order book stands at about Rs 17,000 crore as of date. 

Tata Power Company Ltd primarily engages in the generation, transmission and distribution of electricity. Tata Power Solar Systems Limited (TPSSL) is India's largest specialized EPC player and one of the world's pioneering solar manufacturers. Tata Power Renewable Energy Limited ("TPREL") is a wholly-owned subsidiary of Tata Power Company Limited and one of the country's largest renewable energy players. 

On Wednesday, shares of Tata Power zoomed 1.82 per cent to Rs 187.60 per share with the day’s high of Rs 187.85 and the day’s low of Rs 183.30. The stock has a PE of 10.96x and an ROE of 41.22 per cent. 

The stock gave 81.05 per cent returns in 2 years and multibagger returns of over 451 per cent in just 3 years. This Large-Cap power stock should be kept under the radar.