Tata Power share price tanks 4% despite more than double Q1 net profit; should you buy, hold or sell-
时间:2024-06-26 12:06:33 阅读(143)
Tata Power share price tanked 4% on Wednesday despite the company reporting a 103.2% rise in its consolidated net profit at Rs 794.60 crore in the April-June 2022 quarter, beating street estimates by a wide margin. The Tata Group firm’s revenue from operations increased 43% to Rs 14,495.48 crore. The strong performance was mainly driven by high profits from Coal JV. So far this year, Tata Power share price has fallen 3.2% and analysts see limited upside on the stock despite a second consecutive quarter of strong growth. The stock was quoting at Rs 216 on NSE, down 4% from previous close.
No major triggers in the near-term
Tata Power to remain a strong player in the EPC space
Analysts at B&K Securities believe that Tata Power has positioned itself as India’s largest integrated renewable play. “With cell and module capacity expansions on, the company will remain a strong player in the EPC space, with likely margin improvement from its own manufacturing. We believe Mundra’s long-term resolution and PPA tariff change can give a much better outlook for the UMPP business,” the brokerage said. It expects Tata Power’s RoE to improve over the next five years to ~12% by FY25 on the back of strong growth in EPC + New business which is low capital, low margin but high RoE accretive business. B&K Securities maintains ‘buy’ rating with an unchanged target price of Rs 246 per share.
(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
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