One of the Tata Group stocks engaged in the business of generation, transmission, distribution of electricity, and manufacturing of solar roofs. The stock is in focus after management expects to reach a net profit of Rs. 10,000 crore in FY30, which includes Rs. 5,000 crore or 50% of net profit from renewable energy.
Stock Price Movements
With a market capitalization of Rs. 1,40,882.52 crore, the shares of Tata Power Company Limited were to an intraday high of Rs. 447.70 per equity share, rising nearly around 1.87 percent from its previous day’s close price of Rs. 439.45. The stock is currently trading at Rs 440.95 per equity share.
Company Overview
Tata Power Company Limited is India’s largest vertically integrated power enterprise, encompassing electricity generation, transmission, and distribution.
As a leader in renewable energy solutions, the company is focused on achieving complete green power production. Operating across generation, renewables, transmission, and distribution, Tata Power also has ambitious plans to establish 1 lakh EV charging stations by 2025.
Guidance of Tata Power:
Tata Power plans to expand its clean energy capacity to 23 GW by FY30, up from the current 6.7 GW, according to its latest investor presentation. The company expects 2.5x growth in net profit, reaching Rs. 10,000 crore by FY30, with Rs. 5,000 crore, or 50% of total net profit, contributed by the renewable energy segment.
With a strong focus on renewables, Tata Power will invest Rs. 1.46 lakh crore in capital expenditure between FY25 and FY30, with 60% allocated to renewables.
The company’s energy mix will see a drastic shift, with the share of conventional energy declining from 44% to 11%, further solidifying its commitment to a sustainable future.
Also read…..
Manufacturing Plant:
The 4.3 GW solar cell and module manufacturing plant is fully operational. The module facility is running at full capacity, with the first 2 GW cell production line stabilizing. The second production line is slated to commence operations in November and reach full capacity by December.
Future Outlook for Tata Power:
Tata Power aims to install 1 million rooftop solar systems across Odisha, Uttar Pradesh, and Rajasthan, reinforcing its leadership in renewable energy.
The company’s increased focus on rooftop solar projects, coupled with plans to scale its solar capacity to 2–2.5 GW annually, positions it as a key player in India’s green energy transition.
In the transmission and distribution sector, Tata Power is executing four major projects, with two expected to be commissioned in FY25 and the other two in FY26.
Additionally, the approval of a 1,000 MW pumped hydro project and the launch of the 1,800 MW Shirawta project highlight its commitment to advancing renewable energy storage solutions.
Recent Quarter Results and Ratios
Tata Power Company Limited reported a marginal decline in revenue, which decreased by 0.25% year-over-year (YoY) from Rs. 15,738 crore in Q2 FY24 to Rs. 15,698 crore in Q2 FY25. However, the company’s net profit increased by 7.47%, rising from Rs. 1,017 crore in Q2 FY24 to Rs. 1,093 crore in Q2 FY25.
Over the past four years, Tata Power has achieved a compound annual growth rate (CAGR) of 20.51% in revenue and 34.29% in net profit.
The company’s return on capital employed (ROCE) is 11.7%, and its return on equity (ROE) is 11.3%. Tata Power has a debt-to-equity ratio of 1.73x and an earnings per share (EPS) of Rs. 11.7.
Written By – Nikhil Naik
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!!
