Tata Power Company Limited (TPCL’s) Q3FY22 reported that PAT Consolidation increased by 72% Y-O-Y to RS. 426 crore, below our estimate RS. 790 crore mainly due to the impact on independent income in a steep decline in dividend income (RS. 55 Crore at Q3FY22 versus RS. 700 Crore in Q3FY21) and continued RS. 458 Crore (versus RS. 95 Crore at Q3FY21) in CGPL on a plf account that is lower than 31% and high coal costs. On the positive side, coal mining business reports Pat of RS. 623 Crore (Versus Only Rs. 23 Crore in Q3FY21 and 20% Q-O-Q Growth) Given a record margin of $ 40.1 / ton (up 23% Q-O-Q) and the business again reported a 2x increase in RS to RS. 97 Crore is led by adding a capacity of 289 MW and strong execution of large-scale solar projects and roofs with Solar Systems Limited Power (TPSSL revenues grew 69% YoY and the EBITDA margin increased by 203 BPS YOY to 9.6%. Four Odisha discount (North, West, Central and South) is profitable with combined with Pat of Agregate Hospital. 125 Crore versus only Rs. 21 Crore at Q2FY22.

View

Sustainable Short-Term Coal Prices, Higher Execution / Margin Increases in the EPC Solar Business and Hope Sustainable Increasing in Finance in Odisha makes us confident in the potential for the company’s long-term income growth (expecting 36% Pat CAGR by FY21-24E). In addition, the management business restructuring plan to increase business share is increasing higher will encourage a sustainable increase in the ESG score and return portfolio monetization to help open values. Therefore, we maintain the purchase of Power Resources with PT Revised RS. 275 (reflecting a higher value for solar EPC and Odisha reading). In CMP, stock traded at 2.9x / 2.6x FY23E / FY24E P / BV.

At 14:31 HRS Tata Power Company quoted at Rs 235.70, down RS 5.60, or 2.32 percent.

It has touched the highest intraday Rs 242.00 and Low Intraday Rs 235.35.

It traded with a volume of 2,283,288 shares, compared with an average of thirty days 3,297,342 shares, a decrease of -30.75 percent.

In the previous trading session, shares closed up 1.41 percent or Rs 3.35 at Rs 241.30.

This section touched Rs 269.70 and 52 weeks Rs 86.05 RS 86.05 on October 19, 2021 and 12 February, 2021, respectively.

At present, this trades 12.61 percent below 52-week high and 173.91 percent above the lowest level of 52 weeks.

Market capitalization stands at RS 75,314.15 Crore.