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Friday, June 21, 2024

Should you Buy, Sell or Hold Tata power shares?

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Part of Tata Group, Tata Power Company Limited is an Indian utility company. It spreads across generating, transmitting, and distributing electricity in the country. Tata Power Company Ltd. produces both traditional and renewable energy. The company’s total power generation capacity, including its subsidiaries, is 13,061 MW. 32% of green energy sources, including wind and solar power.

Generation, Renewables, Transmission & Distribution, and Others are the four verticals into which the corporation divides its business operations. The Generation division does power generation from thermal and hydroelectric sources. It also includes the coal division of Tata Power Company Ltd. Renewable energy sources include wind and solar energy production. 

The company’s transmission and distribution network, the sale of power to retail consumers through the distribution network, and related auxiliary services are all included in the transmission and distribution category. The company’s power trading operations are also included.At the time of writing the article, Tata Power share price is Rs. 225, and its market capitalisation stands at Rs. 71,911.13 crore. Tata Power Company Limited announced its Q1FY23 quarterly results recently, highlights of which are as follows:

  1. With a 90% YoY increase in consolidated PAT at Rs. 884 crore and a 48% YoY increase in revenue at Rs 14,776 crore, Tata Power has achieved significant growth in the first quarter of FY23.
  2. Commissioned with 600 MW large-scale EPC projects and wining 1.7 GW projects in the first quarter of FY23, holding a strong Solar EPC order book of Rs. 14,626 crore.
  3. The company commissions India’s first floating solar power project of 101.6 MWp in Kerala.
  4. Signed a memorandum of understanding with the Tamil Nadu state government to spend Rs 3,000 crore to construct a 4 GW solar cell and module plant.
  5. Odisha Discoms, keep up their excellent work. The rollout of the installation of smart meters across all Discoms
  6. Plans a combined CAPEX of Rs. 14,000 crore in FY23 (with Rs. 10,000 crore in Renewables)
  7. A network of 2,350 public and semi-public EV chargers, with another 1,400 chargers under construction, is powering green mobility.
  8. Additionally, 240 bus charging stations and 18,500 private home chargers were built around India. Consequently, the company will be able to maintain its position as one of the nation’s top providers of EV charging infrastructure.

Besides the mentioned points, the company has shown strength and opportunities:

  1. Stock meets most CANSLIM Investment requirements. CANSLIM investment technique is use for selecting growth stock using technical and fundamental techniques.
  2. The company has a high trailing 12-month EPS growth.
  3. High ROE and EPS Growth together with a High Piotroski Score. Piotroski score is used to determine the best value stock wherein the score ranges from 0 to 9, where 0 denotes the worst and 9 denotes the best stock.

However, despite the positives, the company is facing debt issues and declining net cash flows.


An investor can consider buying the Tata Power share price if they find it lucrative.


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