Let us talk about Tata Power. What has fundamentally changed for Tata Power, what is the excitement all about?
Fundamentally things have been scripted already and the market enthusiasm has changed. On one side, there is the loss-making Mundra unit and in that unit now at least the situation has emerged wherein a good quantity of power has been sold at a market price. This could possibly pave the way for the power to be sold at market price and I think the government would probably like to revisit the power purchase agreement, that is the first point.
Second point, the company is systematically moving in the area of renewable energy which is always scripted but now people are seeing actions on the ground. The amount of efforts which most of the companies are putting in in the area of solar and solar energy is now visible, as a result of which people have started getting a lot of clarity about the implementation programmes.
Already, the company has made a discom foray, resulting in success which makes a case for the integrated model that the company has adopted. The perception rating of the stock has improved. Of course, the market has its own mind as far as the price movement is concerned. If it was neglected up till now, in the last two-three months, the market has given a completely different look to this particular company. The market wants to ride the companies neglected so far and that is what is happening with Tata Power. The fundamentals are in place and maybe the perception of the market has started changing for the better.
If you own shares of Tata Power, IRCTC, would you advise your clients to sell them?
If you are holding on to it and your purchase price is lower, certainly it makes sense to stay invested. There is no case for a divesting from these companies.
If somebody says EV is like the infra and commodity of 2003-2004, how should one bet on it?
Currently, Tata Motors’ passenger vehicle portfolio in the EV space is looking reasonably robust and I would think that
is at a stage where Maruti was in early 2000 as far as EV space is concerned. So certainly this is a company to watch out for. This could be possibly doing the same thing that which Maruti did in the early 2000.
However, one can find many companies which are on the ancillary side. Both and Minda Corp have their own share of developments in the EV area. They have been supplying parts to either the two-wheelers or the four-wheelers. I feel that the situation is looking reasonably good for these two companies.
There are plenty of other companies in the ancillary space which are leaning towards the EV space. So slowly and gradually, one can start building the portfolio. We talked about Tata Power’s charging infrastructure; the battery management system and the charging infrastructure related businesses could also be looked at.
Nothing is going to happen in the next one or two quarters. This is more of a directional call on which one will have to remain invested for a relatively longer period of time.
