Stock Fundamentals

Tata Power: All charged up

Maulik Madhu BL Research Bureau | Updated on October 16, 2021

Recent orders and deals in the solar power and EV charging segment have buoyed the stock

Tata Power, a leading integrated power company ,was among the top gainers in the S&P BSE 500 Index last week. The stock, which has been on an uptrend in the past month, clocked a weekly gain of 26 per cent. Multiple factors have been at work.

The surge in power demand with a pick-up in economic activity has, of late, spurred many power and energy stocks. Apart from this, recent orders and deals bagged by Tata Power in the solar power and electric vehicle charging segment have buoyed the stock. Last week, the company’s subsidiary, Tata Power Solar Systems, bagged a ₹538-crore (six per cent of its existing order book) solar EPC project.

On October 5, TVS Motor announced a strategic partnership with Tata Power to create dedicated electric two-wheeler charging infrastructure across the country and to deploy solar power technologies at TVS Motor locations.

Tata Power’s strong (almost one-third generation capacity) and expanding presence in the clean energy space and lower leverage (net debt to equity of 1.57 times as of June, 2021 vs. 1.81 times a year ago), too has attracted much investor interest.

Published on October 16, 2021

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