Tata Power gains on strong Q1 earnings

Shares of Tata Power rose 2% in morning trading on August 10, a day after the company reported a 29% year-on-year (YoY) increase in Q6 net profit to Rs 1,141. crore. Net profit includes a special category of core Rs 235.
The Tata Group company reported a 5% increase in revenue year-on-year to Rs 15,213.3 crore. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 43% to Rs 3,005 crore. EBITDA margins increased 577 basis points to 20.02%. A basis point is a hundredth of a percentage point.
“The company has planned to invest nearly Rs 12 trillion for the current financial year, which will help us lead the transition to green energy and growth opportunities in the transmission and distribution sector. ,” said CEO and CEO Praveer Sinha. Tata Power is engaged in the generation, transmission and distribution of electricity. The Company’s activities involve the production of electricity from various sources, including thermal power, hydroelectricity, renewable energy and solar energy.
CLSA has a “sell” rating on Tata Power with a target price of Rs 195 per share. “Earnings quality remains challenging, with one-time entries supporting PAT. Shares remain expensive at a 22x PE in 2025,” the brokerage said.
At 9:45 am, shares of Tata Power were trading at Rs 239.40, up 1.92% from the previous close.