Tata Power Company Ltd. share price target

Tata Power Company (TPWR) reported another strong quarterly performance in Q2FY23 buoyed by higher profits from coal and Mundra businesses, recovery in profits
of TPSSL and Tata Projects, and strong performance of distribution businesses.

We attended Tata Power Company’s (TPWR) analyst meet during which the company highlighted the growth strategy for its several businesses over FY23-FY27.

The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. Tata Power...

Tata Power is India's largest integrated power company.

TPWR's ~70% run-up in two months stems from power demand growth, international coal price rally and possible renewables business IPO

The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. Tata Power...

Adj. PAT (from continuing ops) at INR4.3b (previous year: INR2.3b) was 19% ahead of our est. of INR3.6b. The beat on our estimates was led by a better performance from the MundraCoal JV hedge. Excluding INR3b in one-time benefits at Mundra, the Mundra (EBITDA) and Coal JV (PAT) came in at INR5b (v/s INR4.8b in 1QFY21) and above our est. of INR4.4b. This was attributable to Mundra performing better than our expectations the company restricted generation, leading to lower underrecoveries on fuel. Solar EPC revenues jumped ~5x YoY to INR19.5b on a strong order backlog...

The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. Tata Power...

TPWR's 4QFY21 result reflects strong numbers, led by higher execution for its solar EPC business and interest cost reduction. Adjusted PAT stood at INR3.5b, and was 11% higher v/s our estimate of INR3.2b. Divestment-related measures and infusion from the promoter has aided debt reduction. The EPC businesses have picked up pace, led by the healthy order book at Tata Power Solar. Possible benefits from the merger of CGPL...

The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. Tata Power...

EPC along with deleveraging leading towards strong quarter Tata Power reported PAT of `3.3bn (adjusted for one time mining expense of `0.6bn) lead by sharp decline in interest cost, better coal JV- Mundra hedge, and profitability of CESU at `340mn. The solar EPC reported an 8.5% EBITDA Margin and 5% PAT margin (adjusted for FX loss of `180mn). The EPC business is recovering and is expected to pick-up, led by the healthy order book at Tata Power Solar. The management expects its solar EPC order book to be completed over...

The improvement in TPWR's 3QFY21 earnings was led by interest cost reduction and profitability in its Odisha distribution business. Adjusted PAT stood at INR3.7b and was significantly higher v/s our estimate of INR2.3b. Divestment-related measures and infusion of INR26b from the promoter has aided debt reduction. The EPC business is recovering and is expected to pick-up, led by the healthy order book at Tata Power Solar. Possible benefits from the merger of CGPL and Tata Power Solar with itself and favorable...

Way2Wealth Brokers Pvt. Ltd. (CIN U67120KA2000PTC027628) SEBI Rgn. No. : INH200002739. Registered Office: Rukmini Towers, 3rd& 4th Floor, # 3/1, Platform Road, Sheshadripuram, Bangalore - 560 020, Website: www.way2wealth.com Email: research@way2wealth.comWay2wealth Research is also available on Bloomberg WTWL W2W Lighthouse A Quick Perspective Tata Power Company Ltd is India's largest integrated private power company with a significant international presence. The company has an installed generation capacity of 12,743 MW in India and a presence in all the segments of power sector viz. Fuel & Logistics Generation (thermal hydro solar and wind) Transmission Distribution and...

Tata Power (TPWR)'s results reflect the recovery in its EPC businesses and better working of its Mundra-Coal JV hedge. Adj. PAT stood at INR3.0b and was significantly higher v/s our est. of INR2.3b. Divestment-related measures (international shipping business, Cennergi, Arutmin, and Tata SED) and the infusion of INR26b from promoter has aided debt reduction. As EPC businesses recover and we build in the expectation of some normalization in WC by FY22, we view the risk-reward as favorable. 1) Possible benefit from the merger of CGPL and Tata Power...

19 August 2020 Tata Power (TPWR) highlighted its focus on addressing legacy issues with Over the past few months, the co.s deleveraging process has been preferential issue to Tata Sons. plans to continue with its asset monetization plans by exiting non-core assets and InvIT for renewables. expects the InvIT transaction to be completed this year. TPWR plans to reduce net debt to INR250b by the end of FY21 and sustain it at these levels. plans to simplify its holding structure and generate synergies from the merger of CGPL, Tata Power Solar, and Aftaab with TPWR. The process for the same requires the NCLTs approval (which could take 412 months). plans to reduce its debt by INR40b using preference and divestment-related proceeds, in turn generating interest cost savings of INR3.8b. In terms of the PPA amendment for CGPL, the benefit of compensatory tariff at current prices stands at INR2.5b.

The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. Tata Power...

Divestment-related measures (part receipt of International Shipping business, Arutmin, and Tata SED) and the infusion of INR26b from promoters would continue to aid debt reduction. The approval of a tariff hike at Mundra, possible benefits from the merger of CGPL & Tata Power Solar with TPWR, and favorable InvIT valuations provide upsides. Divestment-related measures (International Shipping business, Arutmin, and Tata SED) and approval for the infusion of INR26b from promoters would continue to aid debt reduction. The approval of a tariff hike at Mundra, merger of CGPL & Tata Power Solar with TPWR, and favorable InvIT valuations provide upsides. It expects these to be at a similar While certain clarity is pending with respect to upcoming new regulations for Divestment-related measures (International Shipping business, Arutmin, and Tata SED) and approval for the infusion of INR26b from promoters would With normalization in its EPC businesses and some WC, and lower interest costs, we expect EPS to increase at a 910% CAGR over FY2023.