Tata Power- Going Green

Tata Power looks to be in the right direction to become a Large-Cap multi-bagger. The Stock has shown a great surge of 8.25% on Wednesday 29^th September 2021 and by 4.7% on Thursday 30^th September 2021. Let’s discuss what are the reasons behind this rise in stock price and is Tata Power Going Green?

Introduction:

On Wednesday, 29^th September 2021, Tata Power surged by 8.25% on NSE and closed at above Rs. 150 levels at Rs. 151.60. The reason behind this jump in stock price was a reaction by the market to the past announcements of the company.

Possible Reasons:

• As per the reports of Economic Times, Tata Power has relaunched its financing process for its subsidiary business Tata Power Renewables of around $750 Million.
• This amount will be used from a Green Energy point of view.
• Tata Power has aimed to have 40% of Green Share in the business by the year 2025, and 70% by the year 2030.
• The Renewable Energy Portfolio of Tata Company is around 4.5 gigawatt, wherein 2.9 gigawatt is operational, and the rest 1.6 gigawatt is under construction.
• The company is also developing EV Infrastructure where the company owns 600 public charging stations across 110 cities and it has covered 27 Highways.
• The company enjoys a handsome market share of 50% in the country’s EV Charging Stations.
• The company plans to take the number of charging stations from 600 to 2,500 by the end of FY22 i.e., March 2021.
• From an EVs business perspective, the company is having tie-ups with Tata Motors, JLR, MG Motors, HPCL, IOCL, Indian Railways, and Lodha Builders, etc.

Conclusions:

This move of the company towards Green Energy by the company where all other corporates are also investing will be an interesting thing to watch. Also, it appears that from an ESG point of view, the institutional investors are re-rating due to a shift towards Green Energy. This discussion on Tata Power Stock Price is not direct investment advice and hence one should follow due diligence before making any investment decisions.