Nuvama Institutional Equities, a key brokerage house, has retained its ‘Reduce’ call on Tata Power, with a target price of Rs 374 per share. The brokerage maintained this recommendation on the stock despite the company reporting a jump in net profit, revenue, and EBITDA. Nuvama said that the company’s “growth is back-ended”, and it has already priced that in. However, they remained optimistic about Tata Power.
In Q4FY25, the company reported a 24.9% year-on-year jump in consolidated net profit to Rs 1,306 crore, compared with Rs 1,045.6 crore in the same quarter of the last fiscal year. The company’s revenue rose 7.9% YoY to Rs 17,096 crore.
The company missed the FY25 renewable energy addition/capex target by 500 MW. Tata Power gave guidance of 1.5 GW/Rs 4000 crore, compared to Rs 21000 crore guidance.
Nuvama on Tata Power: Still optimistic on long-term RE transition
However, the broker stayed optimistic on the company’s long-term renewable energy transition (which it is expecting to be 70% mix by FY30), solar manufacturing (50% external sales by FY27) and optionality of solar rooftops, and nuclear & potential UP Discom acquisition.
Nuvama on Tata Power: Odisha discoms 3x profit contribution
The Tata Group company reported an adjusted profit after tax (PAT) at Rs 930 crore, up by 49% YoY, aided by 3x Odisha discom profits on the back of higher billing efficiency. The company’s module manufacturing business sold 913 MW worth of modules in Q4 (with 650 MW of cell integration) and drove robust margins of 26.5%, aided by higher third-party sales.
Tata Power stock performance
The share price of Tata Power has risen 5% in the last five trading days. The stock has given a return of over 5% in the past one month. The stock price has fallen 1.6% in the past six months. Tata Power’s share price has declined by 7.7% in the previous one year.