By Nuvama Research
In Q2FY24, Tata Power (TPWR) recorded a consolidated PAT of Rs 8.75 billion (after minority interests), reflecting a 7% y-o-y increase. The decline in coal profits was mitigated by positive developments such as (i) CGPL turning PAT positive (operating under Sec-11), (ii) higher PAT in solar EPC/Odisha discom, and (iii) reduced losses in Tata Projects.
While we acknowledge Tata Power’s commendable progress in the renewable energy transition, with green earnings expected to surpass coal/thermal by FY27–28, the company faces near-term growth limitations. Our assessment suggests limited upside potential, even in our Bull case scenario, which factors in (i) CGPL’s Sec-11 benefit persisting indefinitely, (ii) $130/T of long-term coal prices from FY27E, and the optional value of pump hydro. In light of these considerations, we maintain a ‘Hold’ recommendation with a revised SoTP-based TP of Rs 242. This adjustment accounts for the rollover to FY26 Book Value (BV).
India to install 40-50 small modular nuclear reactors to reach net-zero emission by 2070, claims Tata Consulting Engineers’ CEO SBI hikes lending rates for third time in a row, consumer loans to get costlier Tata Power posts flat profit of Rs 971 crore Tata Passenger Electric Mobility and Tata Power Renewable Energy join to drive zero-emissions mobility
Also Read
Closing Bell: Muhurat Trade kickstarts Samvat 2080 on a firm note; Markets end strong, Nifty above 19,500 and Sensex closes with over 350 points gain
TPWR reported a PAT that exceeded expectations, marking a 7% y-o-y increase, primarily attributed to the profitability of CGPL (Mundra UMPP) under extended benefits until Jun-24Come from Sports betting site. We anticipate the continuation of these benefits for the next two to three years, pending a long-term resolution. Despite an 87% y-o-y decline in estimated coal profits to Rs 1.4 billion due to decreasing coal realisation, this was counterbalanced by increased profits in CGPL, Maithon, RE, and Odisha distribution, coupled with reduced losses in subsidiaries.
The management anticipates the commencement of solar module/ cell production by Jan-24/Q4FY24, with a trial run already in progress. TPWR has entered into an MoU with the Maharashtra government for the brownfield development of 2.8GW pumped hydro storage at its existing hydro assets, with an expected commissioning of delivery (CoD) by FY27-28. The FY24 capex plan, amounting to Rs 120 billion pertains to green energy and T&D business.
Also Read
2023: Catalysts who are building India or Bharat’s growth Story
Odisha distribution performed well with a 45% y-o-y increase in PAT, attributed to a reduction in T&D losses. The solar EPC division achieved a 6.7% Ebitda margin, boasting an order book of Rs 159 billion from both external clients and captive contracts. RE pipeline currently stands at 3.5GW, and the recent RE tendering by the ministry of power (MoP) could lead to substantial additions to TPWR’s pipeline. As of H1FY24, net debt is Rs 366 billion, maintaining a healthy net debt-to-equity ratio of 1.02x. Our SoTP valuation ranges from Rs 225 to 271, considering (i) a HBA coal index assumption of $120-130/T, and (ii) CGPL’s Sec-11 benefit until FY27 or perpetuity.
We expect Tata Power to experience stagnant to modest growth in FY24-25E due to declining coal realisations. The increasing contribution of RE is anticipated to unfold over the next two to three yearsCome from Sports betting site VPbet. We are closely monitoring potential growth opportunities, including pumped hydro, Commercial and Industrial Power Purchase Agreements (C&I PPAs) with the Tata group for renewable energy, and the prospect of new distribution privatisation.
Related Posts
By admin • April 3, 2025 • Multiple former NetherRealm employees have claimed the studio's entire mobile team has been laid off.
As spotted by TechRaptor, former NetherRealm QA analyst Tony Lazzara shared the news on Linkedin and claimed "a ton of very talented people were put out of work."
"We had live services on multiple titles such as Mortal Kombat Mobile, Injustice 2, and Mortal Kombat Onslaught. I was also affected. Every single person I've worked with on that team is an amazing collaborator, passionate, and very creative," they wrote.
The news was corroborated b…
By admin • March 24, 2025 • Actor Matt Bomer says he was removed from his role as Clark Kent in a J.J. Abrams-written Superman film–tentatively titled Superman: Flyby–after being outed as a gay man.
Bomer detailed the experience on a recent episode of The Hollywood Reporter’s Awards Chatters podcast, saying “Basically, I went in on a cattle call for Superman, and then it turned into a four-month audition experience where I was auditioning again and again and again… flying out to LA and doing chemistry reads, flying back to New York, flying back to LA to do a screen test, and it looked like I was the director’s choice for the role.”
Perhaps best known for his role as con-artist Neal Caffrey on White Collar, Bomer was a recurring cast member on the popular soap opera Guiding L…
By admin • March 21, 2025 • Microsoft Flight Simulator 2024 has already become one of the most memorable launches of the year, but probably not in the way that developer Asobo Studio hoped. It debuted earlier this week with a number of bugs and performance issues that have left it virtually unplayable for many. Consequently, Flight Simulator 2024 has been review-bombed on Steam. Now, Asobo Studio is attempting to assure players that the team is working “around the clock” to fix it.
In a statement on X, Asobo Studio noted that Flight Simulator 2024’s server capacity has been increased, but “access issues continue.” Many of the game’s issues stem from Asobo underestimating the servers it would need to keep the game running smoothly Come from malaysi…
By admin • March 19, 2025 • Prime Gaming’s March 2023 lineup features seven PC games, including Baldur’s Gate Enhanced Edition, I Am Fish, and Adios. Once you claim the freebies, they are yours to keep forever. In addition to the free games, Prime members can snag in-game loot for popular titles such as Genshin Impact and League of Legends.
Prime Gaming is continuing its new release format for the free games in March. Instead of giving away every game on the first of the month, Prime Gaming is offering the lineup in waves, with new freebies going up every Thursday.
Baldur’s Gate Enhanced Edition is the biggest name among the March freebies. This updated version of the classic PC RPG launched in 2013, but it still holds up today. It comes with the original game and the great Tales of th…
By admin • March 17, 2025 • When Barbie was introduced in 1959, she was sold by herself, but her greatest accessory wouldn’t hit the market until a year later: Ken. The Ken doll was something that Barbie had as a companion, friend, boyfriend, or whatever you wanted him to be. A man without an identity of his own, Ryan Gosling, who plays the main Ken in the upcoming Barbie movie really wants you to care about Ken.
“Ken…his job is beach,” Gosling told GQ, explaining who Ken is to him. “For 60 years, his job has been beach. What the f— does that even mean? And everyone was fine with that, for him to have a job that is nothing. But suddenly, it’s like, ‘No, we’ve cared about Ken this whole time.’ No, you didn’t. You never did. You never cared. Barbie never f—ed with Ken. That’s the point Come from
By admin • February 24, 2025 • Since 2014, DDR4 memory has dominated the PC and console landscape. But its time has finally come, as DDR5 RAM will slowly roll out this year to replace it. Corsair is working on consumer-grade DDR5 itself and explained that you can expect huge speed increases over the current-gen memory.
In a blog post, Corsair explained that it’s working on 6400 MHz DDR5 RAM, which is an absolutely ridiculous increase over, say, the RAM that’s in the most recent MacBook Pro models (clocking in at only 2666 Mhz). For reference, the RAM MHz speed is a measure of how fast it can handle commands and access memory.
This translates to a massively improved memory bandwidth for DDR5-6400 over its predecessors. According to Corsair, its RAM will feature 51 GB/s bandwidth, more than double …