Rs 18,700 crore order book: This multibagger power company signs PDA for 13.2 MW AC group captive solar plan with Force Motors Ltd and Jaya Hind Industries Pvt Ltd!

The stock gave multibagger returns of over 360 per cent in just 3 years whereas BSE Sensex Index is up by 53 per cent.

Indian stock markets opened higher on Thursday, December 14, 2023. The BSE Sensex Index increased by 1.15 per cent to 70,381 and the NSE Nifty-50 Index increased by 1.06 per cent to 21,145.

Along with the market in green, shares of Tata Power Ltd, reached new all-time and 52-week highs to Rs 341.30 per share, up by 0.96 per cent from its previous closing of Rs 338.05. In the recent trading session, the stock has been hitting back-to-back 52-week highs.  

In a landmark move, Tata Power Renewable Energy Limited (TPREL) has signed a 25-year Power Delivery Agreement (PDA) with Dr Abhay Firodia Group, comprising Force Motors Ltd and Jaya Hind Industries Pvt Ltd, to supply clean energy under the group captive scheme. This partnership marks a crucial step towards sustainable industrial power solutions.

Force Motors, a leading vertically integrated auto manufacturer, will utilize 6.2 MW AC power, consuming 13.64 million units (MUs) annually, while Jaya Hind Industries will consume 15.40 MUs annually using 7.0 MW AC power. The 13.2 MW AC group captive solar plant in Achegaon, Maharashtra, will generate 29.04 MUs annually and significantly reduce carbon emissions by approximately 21,200 metric tons per year. This project is expected to be completed within a year of signing the agreement.

TPREL will manage the entire project lifecycle, overseeing the development, operation, and maintenance of the solar plant. Both Force Motors and Jaya Hind Industries will benefit from a reliable, clean power supply and contribute actively to environmental sustainability. This collaboration exemplifies a significant stride towards a greener future for industrial power consumption in India.

Tata Power is gearing up for a monumental four-year capex blitz of Rs 60,000 crore, strategically targeting diverse energy sectors to fuel its growth and meet soaring electricity needs. Nearly half, a whopping Rs 27,000 crore, will be poured into renewable energy projects, showcasing the company's unwavering commitment to clean energy and a sustainable future. Additionally, a flexible Rs 12,000 crore capex allocation hinges on potential wins in transmission and distribution circles. With a robust order book of Rs 18,200 crore and a total capacity of 4,391 MW, Tata Power is poised for an electrifying future.

Tata Power Company Ltd is primarily involved in the business of the generation, transmission and distribution of electricity. The stock gave multibagger returns of over 360 per cent in just 3 years whereas BSE Sensex Index is up by 53 per cent, BSE Power Index is up by 175 per cent and BSE Utilities Index is up by 156 per cent. Investors should keep an eye on this Large-Cap power stock.

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