Tata Power off from the day's high even as management expects four-fold jump in profit by 2027

Tata Power Company Ltd share price traded positive on Monday in an otherwise strong market and days after the Tata Group firm had declared its July-September quarter results on Friday, October 28, 2022.

Tata Power stock price quoted at Rs 226 apiece on BSE at 10.34 am, after opening at the day's high of Rs 229.65. The stock hit the day's low at Rs 224.50.

Tata Power declared a consolidated profit of Rs 935.18 crore for the September quarter, registering an year-on-year (YoY) growth of 85 percent. It had reported a consolidated profit of Rs 505.66 crore a year ago in the same period.

Tata Power's total revenue came in at Rs 14,030.72 crore, registering a 49 per cent increase on YoY basis. It had reported total income from operations at Rs 9,810.22 crore during the same period last year.

Praveer Sinha, Chief Executive Director and Managing Director, Tata Power told Zee Business that it expects the firm to post a four-fold jump in profit by 2027 and an improvement in margin in the next quarterly result itself.

#NewsParViews

2027 तक मुनाफे में 4 गुना ग्रोथ की उम्मीद...आगे मार्जिन में सुधार होगा: प्रवीर सिन्हा, CEO & MD, टाटा पावर

देखिए नतीजों और बिजनेस आउटलुक पर #TataPower के CEO & MD प्रवीर सिन्हा से अनिल सिंघवी की खास बातचीत@TataPower @AnilSinghvi_ #PraveerSinha pic.twitter.com/BnuzaW3F85

— Zee Business (@ZeeBusiness) October 31, 2022

Domestic brokerage Kotak Securities has a 'sell' rating on Tata Power. It said Tata Power’s stock performance has been range-bound over the past 12 months, as the market looks for clarity on (1) resolution for fuel cost under-recovery at Mundra, and (2) normalized profitability from the coal mines.

The Street has already factored in the positives from growth in the renewable business—Rs20 bn as the first tranche of equity investment in the renewable platform, Kotak Securities said in a research note.

"Our revised FV of Rs220/share (from Rs230/share) does not factor compensation for Mundra UMPP, which could potentially add Rs25/share to our FV estimate. Maintain SELL," it added.

In a separate development, Tata Power has appointed former finance secretary Rajiv Mehrishi as an independent director.

Meanwhile, Indian shares sustained gains led by sharp buying in IT, financials, energy and consumer stocks. The benchmark 30-share BSE Sensex was trading with 550-point gains at 60,528.89, minutes after opening, Nifty50 was trading at17,941.90, higher by 155.10 points or 0.87 per cent.

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