Tata Power Company Ltd. share price target

Tata Power Company (TPCL) reported consolidated revenue (after adjustment for regulatory income), which was down 1.5% yoy to Rs87.2bn in 3QFY16 vs. Rs88.6bn in 3QFY15, however, consolidated operating profit after adjusting for regulatory income was up 23.7% yoy to Rs18.7bn. TPCL reported Rs240mn consolidated net profit, however, adj. net profit stood up 7% yoy at Rs2.12bn, below our expectation of Rs2.4bn. We believe most of the near-term risks in terms of losses from Mundra projects and lower coal prices have already been reflected in the share price, therefore,...

Tata Power Company (TPCL) reported consolidated revenue, up 11.2% yoy to Rs95.4bn in 2QFY16 vs. Rs85.8bn in 2QFY15 due to higher sales from power business, which was however, offset by lower price realisation from coal subsidiaries. Conversely, TPCL reported Rs2.4bn consolidated net profit (our expectation was Rs1bn) in 2QFY16 compared to Rs0.77bn net loss in 2QFY15,...

Eyes on favourable tariff order; Negatives priced in The consolidated revenue of Tata Power Company (TPCL) was up 6.1% yoy to Rs92.3bn in 1QFY16 vs. Rs87.1bn yoy in 1QFY15 due to higher sales from power division, which was offset by lower price realisation from coal companies. However, TPCL reported Rs2.4bn consolidated net profit (ours was Rs2.0bn) in 1QFY16 vs Rs1.11bn net loss in 1QFY15, aided by improvement in operating margins by 451bps on lower fuel cost in CGPL Mundra and improved performance of Mumbai operations. We believe most of the near-term risks like Mundra tariff issue and...

In August 2014, the Supreme Court had stayed an interim order by the APTEL allowing Tata Power to charge higher prices from procurers than agreed upon in the Power Purchase Agreements (PPAs). The apex court directed the tribunal to dispose of the matter speedily. On July 21, 2014, APTEL passed an interim order, which partially upheld Central Electricity Regulatory Authority (CERC) order, by allowing an increase of 52 paisa per unit to Tata Power for the electricity produced from the Mundra-based plants. The higher tariff was allowed due to a sharp surge in Indonesian coal price after...

Buy on dips to Rs 68.5 - Rs 71 for target of Rs 84.5 in one quarter

Tata Powers 4QFY15 recurring PBT of Rs 5.4bn was far ahead of our estimate of Rs 1.2bn due to better than expected profitability from the coal mines and Mundra UMPP. The company has not booked compensation (Rs 1.6/7.6bn for 4QFY15/FY15) due from beneficiaries of Mundra UMPP as the matter remain sub judice.

Buy on dips to Rs 67 - Rs 70 for target of Rs 83 in one quarter

Tata Power reported a loss of Rs 2.4bn (adjusted for forex gain and other one offs) which was way below our PAT estimate of Rs 920mn. Drop in profitability was primarily due to poor performance of the coal business.

presence in all the segment of power sector. Presently it has power generation capacity of 3,797 MW, has plan for 25,000 MW capacity by 2017. The company is successful in public private partnership in generation, transmission and...