Tata Power share price: Buy Tata Power Company, price target Rs 223: Anand Rathi
The period given by the analyst is one year when the price of Tata Power Company Ltd. can achieve the defined goal.
Tata Power Company Ltd., incorporated in 1919, is a mid-cap company (with a market capitalization of Rs 56,669.35 crore) operating in the power sector.
The main product / revenue segments of Tata Power Company Ltd. includes power supply, project management fees, other operating income, finance lease income and fly ash for the year ending March 31, 2021.
For the quarter ended 30-06-2021, the company reported consolidated total income of Rs 10,145.89 crore, down -0.75% from last quarter total income of Rs 10,222.48 crore and in 55.13% increase over same quarter last year total income of Rs 6,540.42 Crore. The company reported net profit after tax of Rs 99.73 crore last quarter.
Justification of the investment
TATAPOWER is India’s largest integrated power company and operates across the entire power value chain. The company’s net debt has been steadily declining. The management of working capital made it possible to control net debt. In addition, the continued deleveraging of the balance sheet through the sale of non-core assets is a key short-term trigger for the business. Therefore, the brokerage initiates a hedge with a PURCHASE rating on the stock with a target price of Rs 223.
Promoter / FiI Holdings
The promoters held 46.9% of the company’s capital as of December 30, 2020, while the FIIs held 12.4%, the DII 24.5% and the public and others 16.2%.
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