Rs 18,700 crore order book & Rs 60,000 crore capex by FY27: Heavy buying in this multibagger power stock; scrip hits 52-week high and m-cap crosses Rs 1,00,000 crore milestone!
The stock gave multibagger returns of over 350 per cent in just 3 years whereas BSE Sensex Index is up by 53 per cent.
Indian stock markets experienced a dip on Thursday, December 7, 2023, following consecutive record highs and recent elections. The BSE Sensex Index decreased by 0.19 per cent to 69,522, while the NSE Nifty-50 Index witnessed a 0.17 per cent decline to 20,901. Of the 3,885 shares traded on the BSE, 2,144 rose, 1,619 fell, and 122 remained unchanged.
While the broader market indices were mixed, the BSE Power and BSE Utilities indices surged ahead, fueled by the strong performance of Adani Group stocks.
However, the true champion of the day was Tata Power Ltd, which reached new all-time and 52-week highs, experiencing a significant volume surge. This strong performance by Tata Power was instrumental in pushing the Power and Utilities indices up by 2.67 per cent and 3.15 per cent, respectively, making it the clear frontrunner in the recent market rally.
On Thursday, shares of Tata Power Ltd gained 12.9 per cent and made a new 52-week high of Rs 332 per share. At the closing bell, shares of the company were trading at Rs 325.75 per share, up 10.76 per cent with a spurt in volume by more than 3 times on BSE. The stock gave multibagger returns of over 350 per cent in just 3 years whereas BSE Sensex Index is up by 53 per cent, BSE Power Index is up by 175 per cent and BSE Utilities Index is up by 166 per cent.
Recently, the company won the bid to acquire Bikaner-III Neemrana-II Transmission Limited, a project special purpose vehicle (SPV) set up by PFC Consulting Limited, a subsidiary of Power Finance Corporation. Additionally, the company received an order for developing a 200 MW Firm and Dispatchable Renewable Energy (FDRE) project with SJVN Limited.
Tata Power is planning a massive Rs 60,000 crore capital expenditure (capex) investment over the next four years, targeting various crucial areas of the energy sector. This ambitious plan aims to fuel the company's future growth and cater to the rising electricity demand. Nearly 45 per cent of the total capex, approximately Rs 27,000 crore, will be dedicated to renewable energy projects between FY24 and FY27. Additionally, out of the total capex, the company has an optional capex of Rs 12,000 crore, which is subject to TBCB wins in transmission and DISCOM circles. This signifies Tata Power's commitment to clean energy and its transition towards a sustainable future.
Order Book: The company order book as of September 30, 2023, stands at Rs 18,200 crore and the total capacity as of June 30, 2023, stands at 4,391 MW. Out of the total order book, the Utility Scale Solar EPC order book stands at Rs 15,870 crore and the Rooftop EPC order book stands at Rs 2,872 crore.
Tata Power Company Ltd is primarily involved in the business of the generation, transmission and distribution of electricity.
According to the Quarterly Results, the net sales increased by 12.17 per cent to Rs 15,738.03 crore in Q2FY24 compared to Q2FY23. The company reported a turnaround in Q2FY24 with a net profit of Rs 765.89 crore compared to a net loss of Rs 284.22 crore in Q2FY23. In its annual results, the net sales increased by 28.7 per cent to Rs 55,109.08 crore and net profit skyrocketed by 186.8 per cent to Rs 610.21 crore in FY23 compared to FY22. The ccompany has delivered good profit growth of 44.9 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 31.7 per cent. The company's overall performance can be attributed to its effective management strategies.
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Disclaimer: The article is for informational purposes only and not investment advice.
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