Broker’s call: Tata Power (Buy)

stock analyst • • US stock market

Target: ₹490

Target: ₹490

CMP: ₹413.65

Tata Power reported Q4-FY24 net consol revenue of ₹15,840 crore(+27 per cent y-o-y, +5% JMFe) and EBITDA of ₹2,700 crore(+23 per cent y-o-y, +3 per cent JMFe) led by higher sales across Odisha discoms and capacity addition in renewables. Reported PAT/ Adj. PAT came in at ₹1,040 crore(+11 per cent y-o-y, +25 per cent JMFe)/₹890 crore (+15 per cent y-o-y, +7 per cent JMFe) due to sale of subsidiaries and JVs.

The company continues to benefit from quick turnaround of Odisha discoms, expansion of RE portfolio and operationalization of Mundra. We continue to believe in it’s growth story involving venturing into brownfield pumped hydro storage, expanding transmission business beyond distribution, emergence of rooftop solar, and visible resolution of the Mundra issue. : The company’s Mundra plant continues to operate under Section-11 (currently applicable up to Oct’24) with PLF of 56% and 70 per cent availability.

 The power demand continues to surge and witnessed a 8%YoY growth in FY24. The management believes this trend to continue at least for the next 2-3 years. The coal prices remains stable for last 6-8 months and are likely to remain stable going forward. 

We continue to maintain Buy, with a SOTP-based TP of ₹490/share.

Like (0)
stock analyststock analyst
Previous May 10, 2024 5:52 pm
Next May 10, 2024 5:52 pm

Related posts

  • Joyson Electronics: Net profit after deducting non-attributed profits in the first quarter was 311 million yuan, a year-on-year increase of 134.18%

    Securities Times e Company News, on April 25, Joyson Electronics announced its first quarter results for 2024. The company achieved operating income of 13.3 billion yuan, and net profit after non-attributable to the parent company increased by 134.18% year-on-year to 311 million yuan. Net profit attributable to the parent company increased by 134.18% year-on-year. Increased 53.11% to 307 million yuan; overall gross profit margin continued to optimize, increasing 2.5 percentage points year-on-year to 15.5%; new full life cycle orders were 29.8 billion yuan, with new energy vehicle-related orders accounting for approximately 77%, and performance continued to maintain strong momentum.

    US stock market April 25, 2024

  • Jagsonpal Pharma introduces new product; shares rise

    Jagsonpal Pharmaceuticals Ltd’s shares were up by 4.71 per cent after the company announced the launch of MemUp, a hormone replacement therapy (HRT) featuring a USFDA-approved combination of bioidentical estradiol and bioidentical progesterone in a single daily oral capsule. MemUp aims to address vasomotor symptoms of menopause, such as hot flashes, night sweats, and sleep issues.

    US stock market May 24, 2024

  • NetEase fell nearly 4% and will announce results tomorrow

    Gelonghui May 22 | NetEase-S (9999.HK) fell nearly 4% to HK$152.3, the second consecutive day of decline

    US stock market May 22, 2024

  • U.S. Treasury yields hit new high this year

    U.S. retail sales in March rose higher than economists expected, further weakening investor confidence in the Federal Reserve starting to cut interest rates this year. Most U.S. Treasury bond yields climbed to new highs since the beginning of the year, with the 2-year Treasury bond yield approaching 5%. The 10-year Treasury yield rose 10 basis points to 4.62%, the highest level since November 14 last year. Expectations for monetary policy have shifted toward the Federal Reserve starting to cut interest rates later, with officials saying rate cuts would require a higher degree of confidence that inflation is continuing to rise toward its 2% target. Traders no longer fully expect a rate cut before November, whereas at the start of the year markets were fully pricing in rate cuts starting in March.

    US stock market April 15, 2024

  • The weakening of interest rate cut expectations caused shocks, and European commercial real estate sales fell to a 13-year low.

    In recent years, Europe\’s commercial real estate industry has been hit by sharp rises in debt costs and sharp falls in house prices. Especially after the epidemic, some office buildings and commercial areas have become inaccessible, and the situation has become increasingly severe.

    US stock market April 25, 2024

  • Will the Bank of England cut interest rates in June or August? You might find out tonight!

    On Thursday, Bank of England Governor Bailey is likely to send a stronger signal on when the central bank can cut borrowing costs from a 16-year high

    US stock market May 9, 2024