Rs 13,018 crore order book: TATA-Group EV-charger & solar company inks MoU with Rajasthan Government for an investment plan of Rs 1,20,000 crore
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 230.75 per share and a whopping 675 per cent in 5 years.
Tata Power Company Ltd, a prominent Indian power company, has signed a substantial Memorandum of Understanding (MoU) with the Rajasthan government, committing an investment of approximately Rs 1.2 lakh crore over the next decade. This strategic partnership aims to transform Rajasthan into a power surplus state, providing clean, affordable and reliable electricity to its residents and industries.
The MoU encompasses a wide range of energy initiatives, including renewable energy projects, solar module manufacturing, rooftop solar installations, transmission and distribution upgrades, nuclear power exploration and electric vehicle (EV) charging infrastructure development. These investments will not only enhance Rajasthan's energy security but also contribute significantly to India's broader clean energy goals.
Key highlights of the MoU include:
- Renewable Energy Expansion: Tata Power will invest nearly Rs 75,000 crore to develop 10,000 MW of renewable energy capacity, including solar and hybrid projects, across various districts in Rajasthan.
- Solar Manufacturing Hub: A state-of-the-art solar module manufacturing facility with an investment of Rs 2,000 crore will be established in Jodhpur, boosting India's domestic manufacturing capabilities and reducing reliance on imports.
- Grid Modernization: The company will invest Rs 20,000 crore in upgrading the state's transmission and distribution infrastructure, reducing energy losses, and improving power quality.
- Nuclear Power Exploration: Tata Power will explore opportunities to develop nuclear power plants in Rajasthan, further diversifying the state's energy mix.
- EV Charging Infrastructure: A significant investment of Rs 1,000 crore will be made to set up 1 lakh EV charging points across Rajasthan, supporting the growth of electric vehicles and reducing carbon emissions.
- Rooftop Solar Promotion: Tata Power will promote rooftop solar installations for 10 lakh households, aligning with the government's PM Surya Ghar Yojana.
This ambitious investment plan is expected to create over 28,000 direct jobs in Rajasthan, stimulate local economic growth and attract green investments to the state. By harnessing Rajasthan's abundant solar potential, Tata Power is not only contributing to the state's development but also playing a vital role in India's transition to a cleaner energy future. In addition, Tata Power has several notable projects in Rajasthan, including a 225 MW hybrid project in Noorsar for Tata Power Mumbai Distribution, a 1 GW solar EPC project in Bikaner for SJVN, a 300 MW solar project in Nokhra for NTPC, a 150 MW solar EPC project in Pokhran for MSEDCL and a 200 MW solar project in Bikaner for Tata Power Trading Company.
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.
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.
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.
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 1.50 lakh crore. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 230.75 per share and a whopping 675 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.