NSE Symbol: TATAPOWER | BSE Code: 500400
TATA Power Share Price Performance
Tata Power Stock Trends - 2018
In January 2018, Tata Power share price was Rs.97.15 on NSE, which rose to touch Rs.100 but failed to sustain at those levels. Thus, the share price reversed to its previous value and dropped to around Rs.98.
Throughout January, the stock price decreased further due to turbulent market conditions and closed at Rs.89 in the end of January. February turned out to be an uneventful month for investors.
As the market conditions were not very favorable for the company's stocks to make significant gains, it remained in the Rs.80 bracket throughout. However, the prices deteriorated further in March and slipped down below Rs.70.
The share prices slightly improved in April to Rs.85 but the gains weren’t very significant. May was again a disappointing month for the investors as the stock prices touched Rs.70 again although the FY18 report had promised healthy numbers. The prices recovered marginally at the end of the month and closed at Rs.81.30.
The prices dropped further to Rs.77.20 in the first week of June and further deteriorated to close the quarter at Rs.73.25.
The Tata Power share prices continued to fall in July and went below the Rs.70 mark. However, it slightly recovered and closed the month at Rs.74.55.
A similar trend was observed in August too as the share prices fluctuated between Rs.67.80 and Rs.76.70, which went up to Rs.78.20 in the beginning of September but drastically decreased to Rs.65.85 by the end of the quarter.
Tata Power Stock Trends - 2016 & 2017
In the beginning of 2016, the Tata Power share price was approximately at Rs.68. However, the scrip depreciated by more than 10% in value over the next few weeks and the price remained in the Rs.50 territory in February and March.
April witnessed a handsome recovery of the share prices, backed by the company’s developments and favorable market conditions. The share prices had crossed Rs.70 by mid-April and shot up to Rs.75 in May. It fluctuated between the Rs.70-75 level in June.
The prices did not vary greatly in the month of July and the share price remained above the Rs.70. In early August, the price jumped up to cross Rs.75 and managed to sustain at this level for a while. However, the prices dropped in September but managed to stay above the Rs.75 mark.
In October, the shares of Tata power shot up over Rs.80 mark. However, after demonetization, the prices dropped and went back to around Rs.70. Tata Power share price recovered in December increased roughly by 10%. The closing price was Rs.75.15 on NSE at the end of the year was Rs.75.15.
In the beginning of January 2017, the stocks were in a rising free and moved past the Rs.80 mark. It continued to rise through February and March and crossed Rs.90 by the closing of the quarter.
However, the share price failed to find support at those levels and retreated to their previous value. It remained steadily above Rs.80 for the most of April and May but fell further towards the end of the month. The stocks of Tata Power Co. Ltd remained below Rs.80 in the initial days of June. A few company updates and developments led to a rise in the stock prices, which reached Rs.85.
The share prices of Tata Power remained at Rs.85 in July but began to behave very abruptly in August and September. After hovering above Rs.80 for a while, the prices plunged back in the Rs.70 zone.
In the last quarter of 2017, investors were overjoyed as prices increased steadily through October, eventually exceeding Rs.85. A dramatic increase in price followed in November when the stocks gained more than 10% in barely two weeks. The prices dropped slightly in the last month of the year, closing the year at Rs.92.05.
TATA Power Company Information and Brief History
Tata Power Company Ltd. is an electric utility company in India that has a massive international presence. As recorded in March 2018, the company has a total power generation capacity of 10,757 MW. More than 70% of its power comes from the thermal power plants while the remaining is obtained through green resources. The company also has an impressive portfolio of generating renewable energy - it can generate 1188 MW of solar power and 1140 MW of wind energy. Additionally, the company is involved in transmission, distribution, and trading as well.
The company was originally started as the Tata Hydropower Power Supply Company in 1916. It was eventually merged with the Andhra Valley Power Supply Company. The first commissioned project of the company was the hydroelectric power generation station at Khopoli in Maharashtra, which has an installed capacity of 40 MW. The company began its second hydropower station at Bhivpuri in Maharashtra, which has the same capacity. Subsequently, both of these stations were upgraded to a capacity of 72 MW. The company moved has expanded ever since and has set up power plants in Karnataka, Gujarat, Maharashtra, West Bengal and Odisha. The market cap of the company was reported to be around Rs.21,000 crore in June 2018.
Wealth and Recent Performance
For the quarter ending in March 2018, the company reported consolidated revenue of Rs.7853 cr, 14% above the revenue in the same quarter last year. Similarly, the profit after tax in the fourth quarter was reported to be at an astounding Rs.1478 cr. This depicted an increase in profit by more than 750% from the profit of the corresponding period in the previous year. Similarly, for the previous financial year, Tata Power Co. Ltd. had stated its revenue at Rs.28921 cr, which was a 6% increase over the revenue in FY 2016-17. The consolidated profit after tax was disclosed to be Rs.2679 cr, which was again an increase of 144% over the previous year's profit. This was mainly a result of the strong performance by renewables, regulated businesses and cost optimization. It is worth noting that exceptional items worth Rs.1103 cr contributed massively to the higher profits. During the same period, the renewable energy portfolio of the company upgraded its capacity to 3417 MW which was 3141 MW in the previous year. In terms of profit, the renewable business brought in a profit after tax of Rs.425 cr. The Board of Directors of Tata Powers Co. Ltd. also recommended a dividend of Rs.1.30 per share.
Is Investing in Tata Power a Good Idea?
Tata Power Co. Limited is a subsidiary of the Tata Group, which is undoubtedly one of the largest conglomerates in the country. The company has strong foundations and has capable management. The company, in terms of financial performance, has delivered astounding results with a dramatic increase of 144% in profit after tax in the last year. A subsequent rise was noticed in the consolidated revenue too.
If we consider the performance of Tata Power shares, the stock prices have gone through its usual fluctuations which are in line with the market. Since January 2017, the stock has grown to deliver returns of over 20%; however, the price collapsed right after reaching its 52-week high.
In terms of the company's performance, Tata Power Co. Limited is determinately focused on expanding its green energy portfolio. Along with India's rapid development and urbanization, the demand for energy will always be on the rise and Tata Power has its strategies ready to tackle that demand. Moreover, the company is also experimenting with different energy sources and promises a bright future. Tata Power is also executing various new projects in the renewable energy segment.
At its current level, Tata Power shares prices are quite conducive for purchase. However, it is strongly recommended that investors conduct their own thorough research before investing in the markets.