Rs 16,252 crore order book: TATA Group-multibagger solar power company signs MoU with the Bank of India; details inside!
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 220 per share whereas BSE Sensex Index is up by 22 per cent in the same period.
Tata Power Solar Systems Limited (TPSSL), a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL), has joined forces with the Bank of India (BOI) to simplify financing for rooftop solar installations and electric vehicle (EV) charging stations. This partnership marks a significant milestone, making TPSSL the first solar company to collaborate with BOI for both solar and EV charging solutions. The initiative aligns with the government's goal of promoting rooftop solar adoption, targeting residential consumers under the PM Surya Ghar Yojana, housing societies, and Micro, Small, and Medium Enterprises (MSMEs).
Under the PM Surya Ghar Yojana, residential customers can avail of loans of up to Rs 2 lakh for solar systems up to 3 kilowatts (KW) and up to Rs. 6 lakh for systems between 3 and 10 KW, requiring a 5 per cent margin. These loans offer attractive interest rates starting from 7.10 per cent per annum and repayment tenure of up to 10 years. Housing societies can access loans of up to Rs 1 crore with a 10 per cent margin. Additionally, UDYAM-registered MSMEs can secure loans of up to Rs 30 crores for solar or EV charging projects, with interest rates commencing from 9.35 per cent per annum, a 15 per cent margin, and a repayment period extending up to 120 months.
With a solar rooftop portfolio exceeding 2 gigawatts (GW), TPSSL has established a strong presence across various states and cities. The company's 34 years of experience, extensive service network, and focus on technological innovation have solidified its position as a trusted leader in the renewable energy sector. TPREL, with its over 5,500 public and semi-public charging points, along with a vast network of home and bus chargers, complements TPSSL's offerings. Together, they form a formidable force driving India's transition towards a green and sustainable future.
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About Tata Power 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 27 per cent to Rs 16,256 crore in Q4FY24 compared to Q4FY23. The company reported a net profit of Rs 1,046 crore in Q4FY24 compared to a net profit of Rs 939 crore in Q4FY23, an increase of 11 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 been maintaining a healthy dividend payout of 23 per cent. The company's overall performance can be attributed to its effective management strategies.
With a robust order book of Rs 16,252 crore as of March 31, 2023, Tata Power is poised for an electrifying future. Tata Power Company Ltd is primarily involved in the business of the generation, transmission and distribution of electricity.
The company has a market cap of over Rs 1.42 lakh crore and shares saw a spurt in volume by more than 1.05 times on BSE. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 220 per share whereas BSE Sensex Index is up by 22 per cent in the same period. Investors should keep an eye on this Mid-Cap power stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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