The Tata Power Company Limited, a part of the prestigious Tata Group, is an Indian electric utility company with a strong presence in all the segments of power - generation, transmission, distribution, and trading.
The market cap of Tata Power Company Limited as of early June 2018, is a little more Rs.21,000 crore.
Company’s Wealth and Recent Performance
- For the quarter ended on March 31, 2018, the company reported its consolidated revenue to be at Rs.7,853 crore - a 14% over the same quarter last year. Similarly, the profit after tax for the fourth quarter was reported to be at an astounding Rs.1,478 crore. This is an increase of over 750% against the corresponding period of the previous year.
- Similarly, for the FY 2017-18, Tata Power Co. Limited stated its revenue to be at Rs.28,921 crore - a six percent increase over the previous fiscal year. Consequently, the consolidated profit after tax for the entire quarter was disclosed to be at Rs.2,679 crore - an increase of 144% over the previous year. This was driven by strong performance by renewables, regulated and regulated businesses, and cost optimisation. It is worth remarking that exceptional items of Rs.1,103 crore contributed heavily to the higher profits.
- In the same period, the renewable energy portfolio improved its capacity to 3,417 MW as against 3,141 MW in the previous year. In terms of profit, renewable business brought in PAT of Rs.425 crore. The Board has also recommended a dividend of Rs.1.30 per share.
Tata Power Company Limited Stock Trends in 2018
- On January 1, 2018, the Tata Power Co. Limited share price on NSE was Rs.97.15. The scrip rose to touch Rs.100 but failed to find support at those levels. As a result, the share price retreated to its previous values and went down to be traded at around Rs.98. Over the course of the month, the stock price went dropped further owing to turbulent market conditions. At the end of the month, the closing price of the scrip was Rs.89.
- February was an uneventful month for the investors. The market conditions were not favourable for the Tata Power Co. Limited stocks to make substantial gains. It stayed in the Rs.80 territory throughout the month. Things deteriorated further in March when the share price slipped down to be traded in the Rs.70 territory.
- The prices recovered slightly in April, although the gains made here weren’t as significant as the ones made in early January. The scrip went beyond the Rs.85 mark. The month of May, however, proved to be a disappointing one for the investors. Despite reporting healthy numbers in the FY18 report, the scrip dropped down to be traded at values around Rs.70. The prices recovered slightly at the end of the month, although the rise was marginal. The closing price of Tata Power Co. Limited scrip on May 31, 2018, was Rs.81.30.
Tata Power Company Limited Stock Information in 2016 and 2017
- At the start of 2016, the share price of Tata Power Co. Limited was approximately Rs.68. Over the course of next few weeks, the scrip moved on to shed more than 10% in value. The price entered the Rs.50 territory in February and stayed there for the most of March.
- The prices recovered handsomely in April on the back of company’s developments and favourable market conditions. By mid-April, the scrip had crossed Rs.70 and by May, it was on the verge of touching Rs.75. It did manage to cross this level in June though it failed to find its bearings there.
- Things did not vary significantly in the month of July. The share price remained above the Rs.70 mark. It wasn’t until early August that the price rose to cross Rs.75 and this time, it managed to find support at those levels. The prices dropped slightly in September, although it wasn’t too dramatic.
- In October, the shares breached past the Rs.80 mark and appeared to be on a rally. However, post demonetisation, the prices tanked and went back to be traded at levels around Rs.70. Tata Power Company Limited shares staged a recovery in December and moved up roughly 10%. The closing price at the end of the year was Rs.75.15 on the NSE.
- At the start of January 2017, the stocks commenced a bull run. The share priced moved past the Rs.80 mark in late January and for the entire month of February, the scrip continued to be traded at those levels. By the end of March, the stock price of Tata Power Co. Ltd had crossed Rs.90.
- After failing to find support at those levels, the prices dropped and retreated back to their previous values. Through April and the first half of May, the stocks were changing hands at levels above Rs.80. However, towards the end of the month, the prices fell further.
- For the first half of June, the stocks of Tata Power Co. Ltd were traded at values below Rs.80. The prices rose eventually driven by company updates and developments. Once again, the price went up to be traded at levels around Rs.85. This was seen through the entire month of July.
- The month of August was a rocky one for the investors as the share price behaved abruptly. The same was the case in September as well. After staying at levels above Rs.80 for a while, the prices plummeted to land back in the Rs.70 zone.
- The final quarter of the calendar year brought some joy to the investors. The prices rose steadily through October and eventually managed to move past Rs.85. There was a dramatic increase in the price in November - the scrip gained more than 10% in roughly two weeks. As a result, the shares were traded at values above Rs.90 in the closing days of November. The prices dropped slightly in December, although it still managed to hold on to its previous gains. The closing price at the end of the year was Rs.92.05.
Should you invest in Tata Power Company Limited stocks?
- Tata Power Co. Limited is a part of the Tata Group - one of the largest conglomerates in India. The company is built on strong foundations and is fundamentally sound with capable management. In terms of financial performance, the company delivered its strongest results with an astounding increase of 144% in profit after tax over last year. A rise was seen in the consolidated revenue as well.
- In terms of stock performance, the scrip has gone through its usual ups and downs which is in line with the market. Considering January 2017 as the baseline, the stock has risen to deliver returns of more than 20%, although the price collapsed soon after reaching its 52 week high.
- In terms of performance of the company, Tata Power Co. Limited is focussed on expanding its green energy portfolio. As the country develops, the demand for energy will increase and Tata Power is strategically placed to meet that demand. It is also experimenting with various energy sources though, their success will be seen in the coming months/years. It is also in the process of executing new projects in the renewable segment.
- At current levels, Tata Power Co. Limited shares certainly appear to be an attractive buy. However, it is strongly suggested that you do your own research before investing in the markets.
Tata Power Company Limited is an Indian electric utility company with a massive international presence. As of March 31, 2018, the total installed power generation capacity of the company is 10,757 MW of which, a little over 70% comes from thermal power plants while the remaining comes through green resources. The company’s renewable energy portfolio is also quite impressive - its solar power capacity stands at 1188 MW and the same for wind energy is 1140 MW. In addition to power generation, the company is also involved in transmission, distribution, and trading.
History of the Company
Tata Power Co. Limited originally started as the Tata Hydropower Power Supply Company in the year 1916 and eventually combined with the Andhra Valley Power Supply Company. Its first commissioned project was the hydro-electric power generation station at Khopoli with an installed capacity of 40 MW. In 1922, the company commissioned its second hydro power station at Bhivpuri with the same capacity. Both the stations were subsequently upgraded to 72 MW capacity. Over the course of next few decades, the company moved on to set up power plants in Gujarat, Maharashtra, Karnataka, West Bengal, and Odisha.
Management of the Company
Mr. Praveen Sinha - Chief Executive Officer & Managing Director
Mr. Sinha has been in the power sector for more than 30 years now and has spearheaded the transformation of power distribution and development segments. He is professionally trained as an electrical engineer and also holds a Master’s Degree in Business Law. He has leveraged his unique set of skills to improve the performance of the company despite challenging conditions. Prior to joining Tata Power, he was the CEO & Managing Director of Tata Power Delhi Distribution Limited.
Mr. Ashok S Sethi - Chief Operating Officer & Executive Director
Mr. Sethi is a Bachelor of Technology from the Indian Institute of Technology, Kharagpur. He has been with the company for more than 35 years and over his impressive tenure, he has held various key positions. One of his key positions includes serving as the Chief of Corporate Operations Management. He also served as the Managing Director of Maithon Power Limited.
Mr. Natarajan Chandrasekaran - Chairman
Mr. Chandrasekaran is the Chairman of the Board of Tata Sons Limited - the holding company of Tata Group. Prior to being appointed as the Chairman, he served as the Chief Executive of Tata Consultancy Services (TCS) from 2009-17. His appointment to the upper management level came after an impressive business career at TCS which spanned 30 years. It was under his leadership that TCS became the largest private sector employer in the country. In addition to this, he also served as a Director on the Board of the Reserve Bank of India in 2016.
Tata Power Company Limited Listings in NSE, BSE, and Indices
The shares of Tata Power Co. Limited are listed on the country’s two major stock exchanges: The National Stock Exchange of India Limited and the Bombay Stock Exchange Limited. In addition to this, the company has also issued Global Depository Shares in the international markets through the Luxembourg Stock Exchange. The respective codes for the same have been mentioned below:
- NSE Code: TATAPOWER
- BSE Code: 500400
- ISIN: INE245A01021
- Sector: Power - Generation & Distribution
The company does not comprise the country’s benchmark stock market indices - NIFTY 50 and BSE SENSEX. However, it does comprise important indices such as:
- NIFTY 200
- NIFTY 500
- NIFTY Energy
- NIFTY 50 USD
- S&P BSE Power
- S&P BSE Utilities
- S&P BSE SENSEX Next 50
24, Homi Mody Street
Mumbai - 400-001
Contact number: +91-22-66658282
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