Rs 13,018 crore order book: TATA Group-multibagger wind-solar company secures 400 MW hybrid project from MSEDCL
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 Renewable Energy Limited (TPREL), one of the leading players in the renewable energy sector and a subsidiary of The Tata Power Company Limited has successfully secured a Letter of Award (LoA) from the Maharashtra State Electricity Distribution Company Limited (MSEDCL), a wholly owned entity under the Maharashtra Government, for the development of a 400 MW Wind-Solar Hybrid project in Maharashtra.
The LoA includes an original contracted capacity of 200 MW, along with a greenshoe option for an additional contracted capacity of 200 MW, making this the largest renewable energy project in the State of Maharashtra till date for TPREL. The project is part of MSEDCL's broader initiative to meet the state's Renewable Purchase Obligation (RPO) and address future power demands at competitive tariffs. The LoA was issued through a competitive bidding process conducted via an electronically-based reverse auction portal.
TPREL's competitive edge and expertise in delivering large-scale renewable projects played a pivotal role in securing this contract. The project is expected to be completed within 24 months from the signing of the Power Purchase Agreement (PPA) between TPREL and MSEDCL and will play a crucial role in cutting carbon emissions, with an estimated reduction of 895 million kilograms of CO2 annually.
The electricity generated by the hybrid project, which combines solar and wind energy, will be supplied to MSEDCL, aiding the utility company in meeting its energy needs sustainably and enhancing Maharashtra’s renewable energy portfolio. The installation will make efficient use of local land resources in the state, further boosting regional development. TPREL’s collaboration with the Government of Maharashtra and Discoms reinforces its role in advancing the state’s renewable targets and transitioning to a low-carbon future, underscoring TPREL’s commitment to green energy innovation and meeting the evolving power demands responsibly.
With this achievement, TPREL's total renewable energy capacity now stands at 10.5 GW with 5.7 GW of projects in various stages of implementation. Its operational capacity has reached 4.8 GW, comprising 3.8 GW of solar and 1 GW of wind energy projects.
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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.
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.