Tata Power on strong footing; zooms nearly 9 per cent

There are multiple drivers impacting the prospects of the stocks.

Tata Power is turning out to be a top-performing Tata Group share on the bourses today. The stock is up by nearly 9 per cent on an intraday basis even as it is up by almost 65 per cent on a YTD basis.  

So, what is leading to such a superlative performance?

To start with, let us first understand that the company has a well-laid-out environmental, social & governance (ESG) plan. There are multiple drivers impacting the prospects of the stocks, such as :

1. Tata Power being the market leader in solar pumps and rooftop solar EPC (expected to record high growth)

2. Utility-scale solar EPC, which is also expected to record decent growth in the coming years.

3. Tata Power boosts of a strong renewable IPP portfolio

4. Tata Power has chalked out a regulated transmission & distribution capex plan. 

These drivers are expected to push earnings and RoE higher for Tata Power. Investors can benefit from the expected improvement in RoE and increase in profits in the coming years and hence, the interest in the counter is rising at the moment as is witnessed in the stock prices.