New Delhi, Dec 7 (IANS) Tata Power is up 12 per cent in trade on Thursday after an upgrade by a brokerage.
Tata Power is trading at Rs 329 on BSE up by 12 per cent.
JM Financial Institutional Securities said in a research that Tata Power’s recalibrated strategy involves tapping high-margin group captive RE (renewables) opportunities, exiting low-value businesses, venturing into brownfield pumped hydro storage, and expanding transmission business beyond distribution.
This, coupled with the visible resolution of the Mundra issue, positions the company for accelerated growth. We forecast Revenue/EBITDA/PAT CAGR of 15%/23%/32% respectively over FY23-26E, supported by increasing asset base and improved margin profile.
“We upgrade the stock’s rating to Buy, setting an SOTP-based TP of INR 350, indicating a potential upside of 24% from current levels”, JM Financial said in a note.
–IANS
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