Tata Power shares gain over 1.5% in early trade; here is why
Tata Power share price NSE: Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power Company Limited, informed the bourses that it would set up a 41 MW captive solar plant at Thoothukudi, Tamil Nadu, for TP Solar Limited's (TP Solar) new greenfield 4.3 GW solar cell and module manufacturing facility in Tirunelveli, Tamil Nadu.
Tata Power share price NSE: Tata Power shares were on investors' radar on Thursday (September 28), a day after Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power Company Limited, informed the bourses that it would set up a 41 MW captive solar plant at Thoothukudi, Tamil Nadu, for TP Solar Limited's (TP Solar) new greenfield 4.3 GW solar cell and module manufacturing facility in Tirunelveli, Tamil Nadu. The counter edged higher in early morning deals and rose as much as 1.7 per cent to Rs 264.25 on the NSE. The counter ended at Rs 259.4, down 0.13 per cent on NSE.
"The captive plant will help generate 101 million units of electricity and offset around 72,000 metric tonnes of CO2 emissions annually. The captive solar project will be commissioned 12 months from the signing of the Project Development Agreement," the Tata Group power generation company's regulatory filing read. "With this new captive solar plant, TPREL’s total capacity will expand to 7,877 MW, including 3,720 MW of projects at different stages of implementation, and an operational capacity of 4,157 MW, comprising 3,154 MW of solar energy and 1,003 MW of wind energy, the regulatory filing further said.
Here's how the stock traded on Thursday:
Source: NSE
Mentioning this as a shining example of a company's commitment to a sustainable transition to green energy, Ashish Khanna, CEO of TPREL, said, "This arrangement will act as a model for all the upcoming solar component manufacturing facilities to source green energy for their production, and the resulting domino effect will significantly contribute towards the country’s ambitious target of achieving 500 GW of non-fossil fuel-based energy capacity by the end of this decade.”
Tata Power- share price target—here's what Jefferies says
Still, a long coal story for Tata Power, says global brokerage Jefferies in its report dated September 18. The brokerage has maintained an underperform rating on the counter but has raised the target price to Rs 215 from Rs 185 earlier.
The brokerage remains concerned with medium-term execution and sustainable returns on the company's power portfolio. A further rally in coal from current levels and a multiplier uptick in EV charging stations are the two key upside risks highlighted by the brokerage.
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03:54 PM IST