Tata group's utility major posts good Q1 results; should you buy, hold or sell it?
Despite the company's stellar Q1 performance, brokerages remain bearish on the counter.
Shares of the Tata Group's utility major Tata Power in early trade on August 7 gained nearly 2 per cent in early trade to Rs 445. Tata Power for the June quarter posted strong performance with profit recording 4 per cent year-on-year growth to Rs 1,189 crore. This is the company's highest ever and 19th consecutive quarter of PAT growth on the back of strong operational performance and execution excellence across all its businesses of Generation, Transmission & Distribution, and Renewables.
Other positive financial metrics
The company reports highest ever quarterly consolidated revenue of Rs 16,810 crore, up 12 per cent on-year.
Consolidated EBITDA rises to Rs 3,350 crore (up 11% YoY)
Capex plan for FY25
Capex investment of Rs 4,000 crore in Q1FY25, while the full year plan is pegged for around Rs 20,000 crore.
Jefferies sees potential downside
The brokerage maintains underperform rating with a target price of Rs 325, implying 26 per cent potential downside. This is as Q1 PAT came in 13 per cent below estimates on the back of lower coal mine profitability. The brokerage estimated the company's solar rooftop & EPC can see recovery ahead, but remain concerned on execution delays & Mundra Plant issues