Rs 17,643 crore order book: DFC Board approves USD 4,25,00,000 for this multibagger power company for 4.3 GW solar cell and module plant in Tamil Nadu!

The stock gave multibagger returns of 380 per cent in just 3 years whereas BSE Sensex Index is up by 73 per cent.

The U.S. International Development Finance Corporation’s (DFC) Board of Directors approved the provision of up to USD 4,25,00,000 in financing in TP Solar Limited, a subsidiary of Tata Power Renewable Energy Limited (TPREL), for its upcoming greenfield 4.3 GW solar cell and module manufacturing plant at Tirunelveli district in Tamil Nadu, India. DFC is America’s development finance institution.

Tata Power Renewable Energy Limited (TPREL) is a subsidiary of Tata Power Ltd, one of India’s largest integrated power companies. The plant’s first module production is expected by the year end and the first cell production is expected in the first quarter of FY24.

Pending a U.S. congressional notification, this investment will support India’s ambitious program to increase renewable energy manufacturing capability to support domestic solar capacity addition as part of its global green energy transition. DFC’s financial support of Tata Power will help secure the supply chain in the country’s journey for leadership in the clean energy space.

DFC partners with private sector players across the globe to finance solutions to the most critical challenges facing the developing world today. The financing support came at a time when global leaders were deliberating on energy transition and other critical sustainability challenges at the recently concluded G20 Summit in New Delhi. This financing support will contribute towards securing India’s commitment to achieve 500 GW of clean energy targets by 2030.

Dr Praveer Sinha, CEO and MD of Tata Power said, "We appreciate DFC's assistance for our solar cell and module production facility in Tamil Nadu. It shows the trust and belief DFC has in Tata Power’s ability to set up a state-of-the-art manufacturing supply line in the country. This will go a long way in supporting the renewable and clean energy transition in the country.”

On Tuesday, shares of TPL plunged 2.63 per cent to Rs 264.65 per share with an intraday high of Rs 275.5 and an intraday low of Rs 260.1. The stock gave multibagger returns of 380 per cent in just 3 years whereas BSE Sensex Index is up by 73 per cent.

According to the consolidated Quarterly Results, the net sales increased by 2 per cent to Rs 15,003 crore (due to higher sales across distribution companies and capacity addition in renewables), EBITDA increased by 43 per cent to Rs 3,005 crore and the net profit increased by 29 per cent to Rs 1,141 crore in Q1FY24 compared to Q1FY23.

Order Book Updates: The company order book as of June 30, 2023, stands at Rs 17,643 crore and the total capacity as of June 30, 2023, stands at 4,199 MW. The Rooftop Solar and Group Captive Order Book stands at Rs 2,504 crore.

Investors should keep an eye on this Large-Cap power stock.

Disclaimer: The article is for informational purposes only and not investment advice.