Tata Power - Research Report

Tata Power is a A /T+2 group Integrated Power Utilities company having Face value of Rs 1.00. Tata Power Company Ltd is India's largest integrated private power company with a significant international presence. The company has an installed generation capacity of 13061 MW (as of September 2021) out of which 3948 MW is from clean and green sources (Hydro waste heat recovery wind and solar) in India and a presence in all the segments of power sector viz. Fuel & Logistics Generation (thermal hydro solar and wind) Transmission Distribution and Trading.

Tata Power's international presence includes strategic investments in Indonesia through 30% stake in the leading coal company PT Kaltim Prima Coal (KPC) in Singapore through Trust Energy Resources to securities coal supply and the shipping of coal for its thermal power generation operations; in South Africa through a joint venture called `Cennergi' to develop projects in South Africa Botswana and Namibia; in Australia through investments in clean coal technologies and in Bhutan through a hydro project in partnership with The Royal Government of Bhutan.

Fundamentals (FY22-23):

CMP	197
52 - week high	Rs. 298.05
52 – week low	Rs 182
Dividend yield (consolidated)	175.00%
ROCE	7.90 %
BVPS	37.56
Revenue	14030.72 cr.
Debt to Equity	2.19
P/E ratio	22.91
EPS	9.83
P/B ratio	6.87
Market Cap	71,958 cr.
Face value	Rs. 1.0

 

 

Financial Results:

Company’s Net Sales Rs 14,030.72 crore in September 2022 up 43.02%, Quarterly Net Profit at Rs. 819.09 crore in September 2022 up 94.32% and its EBITDA stands at Rs. 1,910.79 crore in September 2022 down 6.37% compared to September 2021.

List of recent updates regarding the company:

1. Tata Power announced a Rs 6,000 crore capital investment by the company in Odisha. It will also set up 1,000 electric vehicle (EV) charging points, 1,00,000 solar pumps, microgrids, rooftop and floating solar plants in the next five years.
2. Tata Power is also working with Bhubaneswar Smart City Limited (BSCL) in deploying charging infrastructure at multi-level car parking lots and public utilities like hospitals, universities, malls, and at important city hubs. The company is also in early stages to explore the development of green hydrogen hubs in the Paradeep region to meet industrial demands. The company has already installed over 700 solar pumps in addition to 1,200 dual pumps for community drinking application across the state with a plan to install 30,000 solar pumps over the next five years.
3. Recently, Power discom Tata Power Delhi Distribution Limited (TPDDL) has collaborated with the Indian Army for installing 17 fast charging points for EVs at Delhi Cantt. The chargers will be used for charging personal and official electrical vehicles of the Indian Army and the employees working in the Delhi Cantonment area.
4. Tata Power Renewable Energy Ltd (TPREL), a subsidiary of Tata Power received the 'Letter of Award' (LoA) from the Maharashtra State Electricity Distribution Corporation Ltd (MSEDCL) to set up 150MW solar project in Solapur, Maharashtra. With this, the total renewables capacity of TPREL has reached 5,786 MW with an installed capacity of 3,877 MW (solar - 2,949 MW and wind - 928 MW) and 1,909 MW under various stages of implementation.
5. The has already installed 150 green energy-powered EV stations across residential societies, malls, commercial complex and petrol pumps in Mumbai. Tata Power has also collaborated with the National Real Estate Development Council (NAREDCO), Maharashtra to install up to 5,000 EV charging points across Maharashtra.
6. Tata Power has kicked off an ambitious nation-wide plan of setting up electric vehicle (EV) charging stations from North to South, connecting Kashmir to Kanyakumari and from East to West, from Guwahati to Dwarka and Bikaner over next the next 3-5 years.
7. The company has Launched state-of-the-art Network Control Centre for real-time monitoring and maintenance of its pan-India EV charging points.
8. Tata Power EZ Charge charging points are now present across 25+ states and 5 UTs i.e., approx. 60% of the national highways. It has also achieved a rare landmark of setting up 450+ EZ Charging points across 350 + national highways in the country. Tata Power EZ Charging Points are now present across major national highways including the longest highway (NH 44 which connects J&K to Tamil Nadu), the busiest highway (NH 19 connecting Delhi, UP, Bihar, West Bengal, and Jharkhand) and other highways connecting major states across south, north, east and west India (NH 65, NH 48, NH 16 etc.).
9. Tata Power EZ Charge Mobile app is powering the e-mobility transition with more than 1 lakh downloads.
10. Tata Power has entered a strategic partnership with Hyundai Motor India Ltd (HMIL) to build a robust EV charging network and accelerate the adoption of electric vehicles (EVs) across India. Under the partnership, Tata Power will install Tata Power EZ Charge fast chargers (DC 60 kW) at HMIL's existing 34 EV dealer locations across 29 cities along with supply, installation, and commissioning of home charging for HMIL's EV customers.
11. Tata Power has also inked pact with many infrastructures development companies such as Rustomjee, Kolte Patil and many more to provide charging infrastructure in their residential and commercial projects.

In past one year the stock gave a return of 299.73% as compared to Nifty which gave a return of 55.18% and 300.00% return compared to 54.08% rise in Sensex.

The company also has a strong network of more than 13,000 home chargers (for private use) and more than 200 electric bus charging points installed across India. The company is India's largest EV charging solutions provider, with over 2200 public EV chargers in more than 350 cities. With the chargers powered by renewable/clean energy sources like wind, solar, and hydropower the company’s initiative is in line with ‘Do Green ‘mission to encourage its customers to embrace green and clean energy solutions in their day-to-day life. Company’s new growth driven strategies along with its JVs, partnerships and high penetration in emerging market of EV and its solutions has helped it to range higher and higher in past years and will continue to contribute to its future growth too and considering this the stock is recommended for long term period.

 - HET ZAVERI

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