Rs 13,018 crore order book: Heavy buying in this TATA Group-multibagger wind-solar stock; Company recently secured 400 MW hybrid project from MSEDCL
The stock is up by 99.35 per cent from its 52-week low of Rs 230.75 per share and gave multibagger returns of 580 per cent in 5 years.
On Monday, shares of Tata Power Company Ltd gained 3.60 per cent to an intraday high of Rs 460 per share from its previous closing of Rs 444.20 per share. The stock’s 52-week high is Rs 470.85 and its 52-week low is Rs 230.75. The shares of the company saw a spurt in volume by more than 2.53 times on BSE.
Tata Power Renewable Energy Limited (TPREL) has won a significant contract to develop a 400-megawatt (MW) Wind-Solar Hybrid project in Maharashtra. This is the largest renewable energy project for TPREL in the state. The project, awarded by the Maharashtra State Electricity Distribution Company Limited (MSEDCL), will contribute to the state's renewable energy goals and reduce carbon emissions by an estimated 895 million kilograms annually.
TPREL's expertise and competitive advantage in delivering large-scale renewable projects were instrumental in securing this contract. The project is expected to be completed within 24 months and will generate electricity to meet MSEDCL's growing demand. By combining solar and wind energy, the project will make efficient use of land resources and contribute to a greener Maharashtra. TPREL's collaboration with the Government of Maharashtra and Discoms reinforces its role in advancing the state's renewable energy targets.
About Tata Power Company Ltd
Tata Power, a leading integrated power company under India's largest conglomerate Tata Group, boasts a diverse portfolio of 14,707 MW spanning the entire power spectrum. This includes the generation of both renewable and conventional energy, along with transmission, distribution, trading, storage solutions and even solar cell and module manufacturing. As champions for clean energy, they've committed to achieving carbon neutrality before 2045. Beyond generation, Tata Power has established India's most comprehensive clean energy platform, offering rooftop solar solutions, microgrids, storage solutions, EV charging stations and home automation systems.
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According to the Quarterly Results, the net sales increased by 13.3 per cent to Rs 17,540.98 crore in Q1FY25 compared to the total income of Rs 15,484.71 crore in Q1FY24. The company reported a net profit of Rs 1,188.63 crore in Q1FY25 compared to a net profit of Rs 1,140.97 crore in Q1FY24, an increase of 4.2 per cent. In its annual results, the net sales increased by 10 per cent to Rs 61,542 crore and net profit increased by 12 per cent to Rs 4,280 crore in FY24 compared to FY23. The company has delivered good profit growth of 75 per cent CAGR over the last 5 years and has maintained a healthy dividend payout of 23 per cent.
With a robust order book of Rs 13,018 crore as of June 30, 2024, Tata Power is poised for an electrifying future. Tata Power Company Ltd is primarily involved in generating, transmitting and distributing electricity. The company has a market cap of over Rs 1.45 lakh crore. The stock is up by 99.35 per cent from its 52-week low of Rs 230.75 per share and gave multibagger returns of 580 per cent in 5 years. Investors should keep an eye on this mid-cap power stock.
Disclaimer: The article is for informational purposes only and not investment advice.