Power & Utilities Sector - Tata Power Company Limited

Tata Power Company Ltd.

remains an important company to study because its business combines conventional power generation, transmission, distribution and renewable energy. Its recent corporate disclosures include continued investment and expansion in power infrastructure, while a September 3 announcement highlighted the commissioning of a 400kV Jalpura–Khurja transmission corridor, comprising 162 circuit kilometres of transmission lines and a 1,000 MVA substation. The company has also been expanding its renewable-energy portfolio. The learning point is that power stocks should be analysed through generation capacity, transmission assets, regulated returns, renewable capacity, debt and cash flows. A company's total installed capacity alone does not tell investors how profitable that capacity will be.