Stock on LIFE HIGH! Tata Power share price soars nearly 14% - Details for INVESTORS

Tata Power share price today made new life highs of Rs 132.7. Tata Power share price is Rs 129, up Rs 12 or 10%. The 52 week low on Tata Power share price is Rs 37.8 and the stock has multiplied 3 times in the past 1 year.

HDFC Securities says that Tata Power reported consolidated revenue at Rs 101.3 bn (+53%/+33% YoY/QoQ) in Q4FY21. The numbers are not comparable to our estimates due to the acquisition of the Odisha distribution circle. The growth was also aided by strong execution of solar EPC projects. However, EBITDA declined 8.5% yoy to Rs 14.5 bn due to increased losses in Mundra project from the rise in coal prices. The deleveraging exercise helped the company in lowering its interest expenses, which along with a deferred tax credit led to a 38.6% yoy rise in its APAT to INR3.9bn. Solar EPC order backlog stood strong at Rs 87.4 bn. While the InvIT transaction missed the FY21 end target, the management has indicated a much better alternative for monetisation of its renewable assets which could fetch a higher valuation.

See Zee Business Live TV Streaming Below:

HDFC Securities have revised earnings estimates factoring the inclusion of Odisha discoms and exclusion of renewable business in their estimates. HDFC Securities reiterates BUY on Tata Power factoring in the growth in EPC business, higher regulated capex, debt reduction and merger benefits. Tata Power Standalone Revenue declined 11.6% yoy to Rs 15.6 bn, dragged by lower demand while its PAT came in at Rs 1.6 bn vs a loss of Rs 3.2 bn due to higher dividend from JV companies

Net debt for Tata Power fell to Rs 359.5 bn as of Mar’21 from Rs 435.8 bn yoy. Accordingly, its net D/E declined to 1.4x in FY21 vs 2.0x yoy while Net debt/EBITDA declined to 4.1x in FY21 vs 4.7x yoy. While Tata Power missed its targeted net debt level of Rs 250 bn by FY21 due to the non execution of the proposed InvIT transaction, the management has indicated a much better alternative for monetisation of its renewable assets which could fetch a higher valuation. HDFC Securities reiterate our BUY rating on Tata Power, factoring in the growth in EPC business, higher regulated capex, debt reduction and merger benefits. However, HDFC Securities have revised our earnings estimates factoring in the inclusion of Odisha discoms and exclusion of renewable business in their estimates.