Rs 13,018 crore order book: TATA-Group EV-charger & solar company and Keppel join hands to launch Cooling-as-a-Service solutions in India

The stock is up by 90 per cent from its 52-week low of Rs 230.75 per share and gave multibagger returns of 630 per cent in 5 years.

Tata Power Trading Company Limited (TPTCL), a wholly-owned subsidiary of The Tata Power Company Limited (Tata Power), one of India’s largest integrated power companies and Keppel a Singapore-headquartered global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity, have entered into a collaboration arrangement to launch sustainable Cooling-as-a-Service (CaaS) solutions in India.

CaaS enables businesses and building owners to subscribe to long-term, energy-efficient space cooling solutions without having to invest heavily in infrastructure, thus allowing them to enjoy significant energy and cost savings. Aligned with India’s Cooling Action Plan (ICAP) and its Smart Cities Mission, the Tata Power- Keppel collaboration aims to provide state-of-the-art CaaS solutions, delivered through the deployment of both large-scale District Cooling Systems (DCS)1 as well as individual building systems to serve India’s key urban areas, commercial and industrial sectors. The collaboration will focus on high-demand environments, such as airports, IT parks, Special Economic Zones, data centers, and other industrial and commercial properties where the aggregation of cooling demand through solutions, such as DCS, can help to reduce energy use by up to 40 per cent and cut carbon emissions by up to 50 per cent.

Tata Power, with its rich legacy as a leading energy solutions provider across India, will bring its deep understanding of the local market and extensive infrastructure network to the collaboration. Tata Power will also provide comprehensive energy solutions through the supply of power, energy management services, e-mobility, solar PV/wind and carbon offsets.

Keppel will harness its proven track record in designing and operating CaaS solutions in Asia to jointly explore opportunities with Tata Power in the Indian market. As the pioneer DCS provider in Singapore, Keppel has a combined cooling portfolio of more than 2,60,000 refrigeration tons in Asia2, serving the commercial, retail and residential sectors as well as mission-critical industrial customers, such as wafer fabrication, biomedical and data centers.

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 by 90 per cent from its 52-week low of Rs 230.75 per share and gave multibagger returns of 630 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.