Rs 13,018 crore order book: TATA-Group EV-charger & solar company proposed acquisition of 40 per cent equity stake in Khorlochhu Hydro Power Ltd
The stock is up over 80 per cent from its 52-week low of Rs 230.75 per share and gave multibagger returns of 600 per cent in 5 years.
Tata Power Company Limited has announced a significant step towards its clean energy goals. The company's Board of Directors has approved the acquisition of a 40 per cent equity stake in Khorlochhu Hydro Power Limited (KHPL), a Bhutanese entity developing the 600 MW Khorlochhu Hydropower Project.
This strategic acquisition aligns with Tata Power's commitment to sustainable energy solutions. By investing in this project, the company aims to accelerate its transition to clean and green energy sources. The project, estimated to cost approximately Rs 6,900 crore, will not only contribute to India's energy security but also strengthen the bilateral relationship between India and Bhutan. The acquisition is expected to be completed in phases, with the first tranche targeted for completion by March 31, 2025.
Earlier, Tata Power Trading Company Limited (TPTCL) and Keppel formed a strategic partnership to introduce sustainable Cooling-as-a-Service (CaaS) solutions in India. This collaboration aligns with India's Cooling Action Plan and Smart Cities Mission, aiming to provide energy-efficient space cooling solutions to businesses and building owners. By deploying large-scale District Cooling Systems (DCS) and individual building systems, the partnership seeks to reduce energy consumption by up to 40 per cent and carbon emissions by up to 50 per cent in high-demand areas like airports, IT parks, and data centers. Tata Power's local market expertise and infrastructure network, coupled with Keppel's experience in designing and operating CaaS solutions in Asia, will drive the successful implementation of these sustainable cooling solutions in India.
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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 1.30 lakh crore. The stock is up over 80 per cent from its 52-week low of Rs 230.75 per share and gave multibagger returns of 600 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.