Rs 17,643 crore order book: Back-to-back 52-week highs in this multibagger power stock as the company partners with Tata Motors Ltd for solar project in Pune!

The stock gave multibagger returns of 400 per cent in just 3 years whereas BSE Sensex Index is up by 74 per cent.

Tata Motors Limited (Tata Motors) and Tata Power Renewable Energy Limited (TPREL), a leading player in the renewable energy sector and a subsidiary of Tata Power Ltd have entered into a Power Purchase Agreement (PPA) to develop a new 12MWp on-site solar project at Tata Motors’ Pune commercial vehicle manufacturing facility. A significant step towards attaining green manufacturing, the installation is collectively expected to generate 17.5 million units of electricity every year, which will meet nearly 17.2 per cent of the annualized requirement, potentially mitigating over 12,400 tones/kWh of carbon emission each year.

The solar project is to be commissioned within six months after the PPA gets signed and will be a significant contributor to Tata Motors' long-term ambitions. The PPA will include rooftop installations. This 12MWp adds to the existing 8.73 MWp summing to 20.73 MWp for Tata Motors across CVBU (Commercial vehicle), Pune. Over the next few years, the company plans to expand the solar capacity of its Pune plant to meet the growing demand for renewable energy.

Tata Power Renewable Energy Limited and Tata Motors Limited have previously collaborated to develop a 16MWp solar power project in Pantnagar, Uttarakhand, which is slated to be the largest in terms of capacity in the state. Tata Power is India's Largest Integrated Power Company, present across the entire power value chain of conventional & renewable energy, power services and next-generation customer solutions including solar rooftop and EV charging stations.

On Friday, shares of TPL surged 2.01 per cent to Rs 268.9 per share with an intraday high of Rs 276.5 and an intraday low of Rs 263.85. The stock also made a 52-week high of Rs 276.5 per share with a spurt in volume by more than 3.78 times on BSE. The stock gave multibagger returns of 400 per cent in just 3 years whereas BSE Sensex Index is up by 74 per cent.

According to the consolidated Quarterly Results, the net sales increased by 2 per cent to Rs 15,003 crore (due to higher sales across distribution companies and capacity addition in renewables), EBITDA increased by 43 per cent to Rs 3,005 crore and the net profit increased by 29 per cent to Rs 1,141 crore in Q1FY24 compared to Q1FY23.

Order Book Updates: The company order book as of June 30, 2023, stands at Rs 17,643 crore and the total capacity as of June 30, 2023, stands at 4,199 MW. The Rooftop Solar and Group Captive Order Book stands at Rs 2,504 crore.

Investors should keep an eye on this Large-Cap power stock.

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