Tata Power shares fall 4.6% despite posting strong Q3 results; what should investors do? – Wajobz



Tata Power share price: Shares of Tata Group’s power company Tata Power fell as much as 4.6 per cent on Monday, February 12, even after the electricity generator reported strong results for Q3 FY24, which was better than analysts’ estimates.

Last seen, the company’s shares were trading 2.19 per cent lower at Rs 383.50 apiece on the BSE.

A look at Tata Power’s Q3 results

Tata Power reported a consolidated net profit of Rs 953 crore, up 0.8 per cent on a year-on-year basis, for the third quarter of the financial year 2024, which ended on December 31, 2023.

The company’s revenues were Rs 14,651 crore for the fiscal third quarter, as against Rs 14,129.1 crore logged in the corresponding period a year ago, according to a regulatory filing. READ MORE

What do brokerages say about Tata Power’s stock?

Morgan Stanley maintained an ‘underweight’ rating on Tata Power with the target price of Rs 213. According to them, earnings miss was driven by slower growth in regulated business & lower margins in utility scale renewable. Commissioning of renewable energy remains sluggish while key positives were solar EPC business execution & improved profitability of coal JV in Q3. margins in utility scale renewable.

On the other hand, CLSA maintained a ‘sell’ call on the stock and raised its target to Rs 249 from Rs 240 while JM Financial has maintained a “buy” call and has raised the target by Rs 90 each from Rs 350 to Rs 450.

Here’s what Tata Power’s management say

In a conversation with Zee Business’ managing editor Anil Singhvi, Tata Power’s CEO and MD, Praveer Sinha said, “We have earned around 71 per cent profit from our core business this time which was 45 per cent earlier. This is a very good trend as it improves our fundamentals.”

The company has earned growth in 17th quarter continuously. Talking about the solar rooftops, Sinha said, 3-5 KW solar rooftops will be installed in houses. If we talk about 1 lakh crore households, there will be an addition of 30 GW capacity.

Tata Power is the country’s biggest solar company. It is present in 400 cities and is working with over 500 channel partners. The company has received a good opportunity from govt’s Arunodoi Scheme. This is likely to increase the company’s revenue to Rs 1,50,000 crore if 30 GW is installed. It has a 15 per cent market share.

“Tata Power is also working on increasing its EV penetration,” said Sinha. The company has a 55 per cent market share in the EV segment, and has already installed 5.5K public charges.


Please enter your comment!
Please enter your name here