Tata Power Company Ltd., incorporated in the year 1919, is a Mid Cap company (having a market cap of Rs 33263.48 Crore) operating in Power sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 7702.84 Crore, down -8.75 % from last quarter Total Income of Rs 8441.60 Crore and up 7.94 % from last year same quarter Total Income of Rs 7136.04 Crore. Company reported net profit after tax of Rs 166.00 Crore in latest quarter.
Investment Rationale
The brokerage firmly believes that TPCL is primed for sustainable and clean growth (read Dec 20 note). It forecasts sunrise business PAT mix at 35–40% by FY23. The brokerage is raising the TP to INR120 as it: a) roll forward to September 2022E; b) assign higher valuation to renewable EPC (12x P/E vs 8x earlier); c) assign higher valuation to distribution business factoring new opportunities (2x P/Bv vs 1.5x earlier); and d) incorporate Tata Projects in SOTP. Renewable InvIT delay and higher AT&C losses are a few key risks
Promoter/FII Holdings
Promoters held 46.9 per cent stake in the company as of Dec 30, 2020, while FIIs held 12.4 per cent, DIIs 24.5 per cent and public and others 16.2 per cent.
