Mar'25 View on Tata Power Company Ltd

Tata Power Company Ltd is primarily involved in the business of the generation, transmission and distribution of electricity. It aims to produce electricity completely through renewable sources. It also manufactures solar roofs and plans to build 1 lakh ev charging stations by 2025[1] The company is India's largest vertically-integrated power company. The stock is taking strong support at 340 level and looks to rebound near 390 level based on following inputs • Renewable and thermal clusters lead the income growth during the quarter. • Reported better margin for Tata Power Solar; improved utilization at cell & module facility. • Pipeline of 5 GW of renewable assets & Rs13500cr external order book to drive growth. • Q3FY25 profit growth of 8% yoy was boosted on account of the regulatory order for Mundra and a lower effective tax rate. • Renewables to remain the mainstay of future growth. • Valuations at 20X P/E and 2.7X P/B on FY26E remain rich.