Add Tata Power Company, target price Rs 243 : HDFC Securities

HDFC Securities has add call on Tata Power Company with a target price of Rs 243. The current market price of Tata Power Company is Rs 206.4.

Tata Power Company, incorporated in the year 1919, is a Mid Cap company (having a market cap of Rs 65903.88 Crore) operating in Power sector.

Tata Power Company key Products/Revenue Segments include Power Supply, Project Management Fees, Other Operating Revenue, Income from Finance Leases and Fly Ash for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 14181.07 Crore, down -3.13 % from last quarter Total Income of Rs 14638.78 Crore and up 39.20 % from last year same quarter Total Income of Rs 10187.33 Crore. Company has reported net profit after tax of Rs -284.22 Crore in latest quarter.

The company’s top management includes Mr.Natarajan Chandrasekaran, Ms.Anjali Bansal, Mr.K M Chandrasekhar, Mr.Sanjay V Bhandarkar, Ms.Vibha Padalkar, Mr.Hemant Bhargava, Mr.Ashok Sinha, Mr.Banmali Agrawal, Mr.Praveer Sinha, Mr.Saurabh Agrawal. Company has SRBC & Co LLP as its auditors. As on 30-06-2022, the company has a total of 320 Crore shares outstanding.

Investment Rationale
Revenue is expected to grow by 37.0% YoY to INR149.5bn, led by improved generation at the Mundra plant (+20.7% YoY to 3.4bn) and CERC’s favourable order, higher power demand across its distribution circles, and executions in its solar EPC segment.

Promoter/FII Holdings
Promoters held 46.86 per cent stake in the company as of 30-Jun-2022, while FIIs owned 10.1 per cent, DIIs 14.69 per cent.