Emkay Global has given a buy rating to Tata Power with a target price of Rs 73. The share price moved up by 0.47 per cent from its previous close of Rs 52.95. The stock’s last traded price is Rs 53.20.

Tata Power Company Ltd., incorporated in the year 1919, is a Mid Cap company (having a market cap of Rs 14524.63 Crore) operating in Power sector.

For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 6452.99 Crore, down 2.53 % from last quarter Sales of Rs 6620.80 Crore and down 16.91 % from last year same quarter Sales of Rs 7766.72 Crore. Company reported net profit after tax of Rs 91.23 Crore in latest quarter.

Tata Power

Investment Rationale
Renewable InvIT and non-core asset sales will significantly de-risk the balance sheet, with net debt/equity estimated at 1:1 by FY23E. Earnings growth will be super-charged – rising 41% through FY23 with significant and sustainable improvement in ROEs. The brokerage initiates coverage on Tata Power with a Buy rating and a SoTP-driven TP of Rs73.

Promoter/FII Holdings
Promoters held 37.2 per cent stake in the company as of June 30, 2020 while FIIs held 12.9 per cent, DIIs 30.4 per cent and public and others 19.5 per cent.

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