Tata Power, the leading player in India’s power industry, recently achieved a major milestone that Tata Power Cross ₹1 lakh-crore m-cap. This success not only demonstrates the company’s impressive market value, but also its strong position in the industry.
As one of India’s largest integrated energy companies, Tata Power is at the forefront of innovative and sustainable energy solutions. Tata Power has a diversified portfolio that includes thermal energy, hydro power, solar power and wind energy generation capabilities and is well-positioned to meet the country’s growing energy needs.
Additionally, Tata Power is actively involved in exploring new opportunities in the renewable energy sector. The company aims to expand its renewable energy portfolio and reduce its carbon footprint by focusing on large-scale solar projects, wind farms and innovative technologies.
The success story of Tata Power Cross ₹1 lakh-crore m-cap :
The sixth firm in the Tata Group portfolio ,Tata Power Cross ₹1 lakh-crore m-cap a prominent integrated power company in India with operations spanning all value chains.
On Thursday, December 7, 2023, the share price of the company increased by 7% to Rs315.
The stock had closed at Rs207.7 on December 30, 2022, and it had gained 51.7% in the previous year. When compared to its March 2023 52-week low of Rs182.45, the stock had returned 72.7%.
Since the business had an analyst meeting to outline their future plans, shares of Tata Power have gained significantly. During the conference, Tata Power revealed its plans to invest Rs60,000 crore by FY27, of which 44% will be allocated to the adoption of renewable energy sources. They also promised to put over Rs13,000 crore into two 2.8GW pumped hydro storage projects, which will allow the company to supply renewable energy sources continuously.
Tata Power aims to increase its portfolio of clean energy to 20 GW by 2030 from the current 5.5 GW. More than 3.7 GW of its projected 20 GW total capacity are now under construction.
Management has projected that revenues, EBITDA, and profit after tax will double by FY27 due to significant growth in the large-scale renewable energy portfolio, higher transmission and distribution asset profitability, and promising prospects in group captive and solar rooftop PV installations.
A recent report that Financial upgraded Tata Power from Hold to Buy and increased their target price for the stock from Rs220 to Rs350. Remarks Regarding JM Finance Tata Power recently resolved the Mundra issues and is now pursuing a recalibrated strategy that includes exiting low value businesses, and expanding transmission beyond distribution in order to position themselves for rapid growth over the medium to long term.
- FY 2027 Goals: The company aims to double FY 2023 revenue, EBITDA, and PAT in addition to increasing clean and green EBITDA in FY 2023 70% to 79% in FY 2027. Sales of Residential Real Estate in Desirable Areas.
- Between FY24 and FY27, Tata Power intends to invest Rs60,000 crore in capital expenditures, or capex. Here’s an approximate summary: forty-five percent renewable energy
15% Hydro Pumped
5% for traditional generation (coal, shipping) and
18% for T&D (with an additional 18% optional).
Tata electricity plans to offer 24/7 RE electricity by FY28 with a robust portfolio of renewables and storage, and to meet targets for FY27 and FY30 through captive projects with an increasing share. Between FY23 and FY30, the shares from these captive projects climbed from 10600CR to 17,000CR and 20CR, respectively.
Tata Power has made investments in two brownfield pumped hydro storage (PSP) projects, Bhivpuri pumped hydro storage (1,800 MW) and Bhilpuri pumped hydro storage (1,800 MW), both located in Shirawta. This facility currently has 1,800MW of installed capacity. 5. Renewable Capacity: At present, we have 5.5 GW of renewable capacity; by 2027, we aim to reach 15 GW+ and by 2030, 20 GW+, and by 2045, we want to run on clean, green energy exclusively.
https://www.youtube.com/watch?v=Gt5EFsHYV6U
Opportunities for Transmission:
There are prospects for 50,890 circuit kilometers and 4.3 lakh Mega Volt Ampere substations within five years.
Solar EPC Business:
Over the next six to twenty-four months, it is anticipated that the Rs. 18,700 crore order backlog for third-party solar EPC firms will be fulfilled. Future focus areas for EPC will include utility-scale, rooftop, and group captive projects.
Solar Pumps:
Due to the potential for lower returns and a postponed implementation of the P M Kisan Urja Suraksha evam Utthaan Mahabhiyan scheme, generally known as the “Kusum Scheme,” the company has cut its expectations for solar pumps.
Mundra Thermal Plant:
The Mundra Thermal Plant Limited (MUTLL) states that it would not be beneficial to expand any more to Section 11.
Charging Business:
Fleet, bus, home, and public charging are the four types of charging that this company offers. By FY28, the business hopes to have 10,000 public chargers and 200k private chargers built.