Tata Power joins elite club of companies with Rs 1 lakh crore (1 Trillion) market cap

• Becomes second infrastructure & sixth company from Tata Group to achieve this milestone
• The stock has given 57% return to investors in 2023 surging 18% during this week

Tata Power, one of India’s largest integrated power companies, joined the elite club of firms with more than Rs 1 lakh crore (1 trillion) market cap. It became the second infrastructure and sixth company from Tata Group to achieve this milestone. The stock has delivered returns of 56.8% in 2023.

Amidst COP28, when the world’s biggest companies are deliberating about clean energy transition, Tata Power has already taken the lead in clean energy generation with the investment of Rs 13,000 crore in two Pumped Hydro Storage Projects of 2.8GW, which will help the Company provide blended Round The Clock (RTC) renewable power to consumers.

In a recent analyst meet, Tata Power announced capex of Rs 60,000 crore by FY27; 45% of which would be deployed in the renewables sector. Tata Power currently has clean energy portfolio of 5.5 GW, which the Company is aiming to take to 20 GW by 2030. The Company is aiming for 68% of the capacity from clean and green energy from 43% in FY23. 3.7 GW of the capacity is already under construction. The management has given a guidance of doubling the revenue, EBITDA and PAT by FY27 on the back of strong growth across large scale RE portfolio, and higher profitability from Transmission & Distribution assets as well as robust opportunities in group captive and solar rooftop.

In a recent report, JM Financial has upgraded Tata Power to ‘Buy’ from ‘Hold’ raising the target price to Rs 350 from Rs 220 earlier.