During Thursday’s trading session, the shares of a leading integrated power company and a part of the Tata Group are in focus after the company announced signing a Memorandum of Understanding (MoU) for $4.25 Billion to Finance Key Clean Energy Power Projects.
With a market cap of Rs. 1.3 lakh crores, the shares of Tata Power Company opened in the green at Rs. 412, up by nearly 1 percent, as against its previous closing price of Rs. 408.1.
What’s the news:
Tata Power and the Asian Development Bank (ADB) signed an MoU in conjunction with the ongoing Climate Conference (COP29) in Baku, Azerbaijan, as per the latest regulatory filings with the stock exchanges.
The agreement focuses on evaluating financing options for several strategic projects aimed at enhancing India’s power infrastructure while promoting renewable and clean energy initiatives.
The MoU outlines the evaluation of financing for several key ongoing projects, including the 966 MW Solar Wind Hybrid project, Pumped Hydro Storage Project and other projects in the pipeline related to energy transition, decarbonization, and battery storage.
It also covers ongoing funding for capex towards strengthening the distribution networks managed by Tata Power. The total estimated cost of these projects is around $4.25 billion.
This partnership between Tata Power and ADB is crucial as India works to accelerate its efforts toward achieving the renewable energy target of 500 GW by 2030.
The projects under evaluation, including the large-scale solar-wind hybrid systems and advanced hydro storage solutions, represent significant investments in the future of India’s clean energy infrastructure.
Through initiatives like these, Tata Power aims to strengthen the nation’s capacity for renewable energy, reduce dependency on fossil fuels, and contribute to a sustainable and energy-secure future.
Also read….
Financials:
Tata Power Company reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of nearly 0.3 percent, rising from Rs. 15,738 crores in Q2 FY24 to Rs. 15,698 crores in Q2 FY25.
In contrast, during the same period, the company’s net profit increased from Rs. 1,017 crores to Rs. 1,093 crores, representing a rise of around 7.5 percent YoY.
Key Financial Ratios:
In terms of key financial metrics, Tata Power Company has a Return on Equity (RoE) of 11.3 percent and a return on capital employed (RoCE) of 11.1 percent. Additionally, the company’s debt-to-equity ratio stands at 1.73.
Stock Performance:
The stock has delivered positive returns of nearly 55.6 percent in one year, but around 7.5 percent of negative returns in the last six months. So far in 2024, the shares of Tata Power Company have given positive returns of about 24 percent.
About the company:
Tata Power Company Limited is one of India’s largest integrated power companies and its portfolio spans the entire power value chain, from renewable and conventional energy generation to transmission, distribution, trading, storage solutions, and solar cell and module manufacturing.
The company is also involved in the deployment and implementation of smart meters, which are advanced digital devices that enhance electricity consumption monitoring and management.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
