Tata Power shares surge after company gets new project from Tata Steel
Tata Power share price: The stock witnessed a buying interest after the Indian electric utility company received a Letter of Award LOA to set up 966 MW of RTC (round-the-clock) hybrid renewable power for Tata Steel.
Tata Power share price: Shares of Tata Power, a Tata Group power generation subsidiary, soared as much as 2 per cent to touch a record high of Rs 224.95 apiece on the BSE during Friday’s session. At closing the scrip traded at Rs 221.1 apiece, up 0.20 per cent.
The stock witnessed a buying interest after the Indian electric utility company received a Letter of Award (LOA) to set up 966 MW of RTC (round-the-clock) hybrid renewable power for Tata Steel.
"Tata Power Renewable Energy Limited, through its subsidiary TP Vardhaman Surya Limited, received a Letter of Award (LOA) to set up 966 MW of RTC (round-the-clock) hybrid renewable power for Tata Steel. This is one of the biggest industrial RTC power PPAs under the Group Captive segment in the country. The project has a hybrid renewable capacity of 379 MW of solar and 587 MW of wind power," the filing read.
At around 12:40 PM, the stock was quoted at 222.50 per share, up Rs 1.90 or 0.86 per cent today from the previous day’s closing of Rs 220.6 per share on the BSE. It extended gains for the third consecutive trading session on Friday.
Brokerages' view
Nuvama has given a ‘hold’ call on Tata Power for a target price of Rs 185 apiece as the company is moving away from coal profits to a higher profit mix from renewable energy over the next three to four years.
ICICI Securities has a ‘buy’ call on the stock with a target price of Rs 262 apiece, implying nearly 20 per cent potential upside.
"We revise our estimates for FY23E and FY24E, factoring in the higher coal prices and earnings on the sale of power from the Mundra plant under Section 11 of the Electricity Act as well as the impact of the recent CERC order on Mundra’s FY23E earnings," said the brokerage in the report.
Tata Power share price NSE: Past performance
So far in 2023, the shares of Tata Power have gained nearly 5 per cent as against the Nifty’s rise of over 2 per cent. In the last year, the scrip has declined nearly 6 per cent against the headline index’s rise of over 13 per cent.
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