Rs 13,018 crore order book: India's largest EV Charging solutions provider signs a MoU with Tata Motors Ltd
The stock is up by 94 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 EV Charging Solutions Limited, one of India's largest EV Charging solutions providers and a subsidiary of Tata Power Renewable Energy Limited (a subsidiary of Tata Power), announced the signing of a Memorandum of Understanding (MoU) with Tata Motors Limited (Tata Motors), India's largest commercial vehicle manufacturer, to set up 200 fast-charging stations for electric commercial vehicles (CV) in all metros cities viz. Mumbai, Delhi, Chennai, Bengaluru, Kolkata.
This strategic move expands their ongoing collaboration, in providing sustainable mobility solutions, with a focus on easy charging solutions for small electric commercial vehicles. As part of this initiative, Tata Motors and Tata Power will provide exclusive charging tariffs for Tata Motors' electric CV owners, resulting in lower operating costs and increased profitability for its customers. Electric CV users across the country will soon benefit from access to almost 1000 strategically located fast chargers, with the planned expansion of the charging network.
Tata Power has expanded its network under the brand name of EZ Charge to over 1,00,000 home chargers, 5,500+ public, semi-public, and fleet charging points, along with 1100+ bus charging stations across 530 cities and towns. These chargers have been strategically deployed at diverse and accessible locations such as highways, hotels, malls, hospitals, offices, residential complexes, etc.
This concerted effort has been instrumental in facilitating the exponential growth of electric mobility in India. Tata Motors offers the Ace EV, India’s most advanced electric small commercial vehicle, which is supported by over 150 Electric Vehicle Service Centres nationwide. The Ace EV features an advanced battery management system and 'Fleet Edge' telematics, utilizing smart technologies to improve vehicle uptime and road safety with real-time insights into vehicle status, health, location and driver behaviours.
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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. The company has delivered good profit growth of 75 per cent CAGR over the last 5 years and has maintained 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 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 1.40 lakh crore. The stock is up by 94 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.
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