Analysts bullish on Tata Power on SC ruling
Analysts have a positive view on the long term prospects of Tata Power, with the Supreme Court verdict going in favour of the company.
By Saikat Das, ET Online |
MUMBAI: Analysts have a positive view on the long term prospects of Tata Power, with the Supreme Court verdict going in favour of the company.
The apex court held that Tata Power can supply power directly to consumers below 1000 kVA, as well as to high end consumers like the railways and factories.
���This verdict is going to be positive for the stock price and debtors of the company,��� said Tejvinder Singh, research analyst, Arihant Capital Markets.
According to Singh, as the company has got clearance to supply electricity to retail consumers, it will help in realisation of more tariffs.
Interestingly, retail segment in Mumbai and its suburb is currently dominated by Reliance Infrastructure.
To what extent Tata Power can penetrate in this segment remains to be seen. This depends on the revenue generation as well, an analyst said.
Analysts do not see any immediate impact as Tata Power���s rival Reliance Energy is much ahead of it.
���In the short run, there will not be much impact on the stock as it has a customer base of around 24,000 as against Reliance Infra���s (earlier Reliance Energy) customer base of 2,40,000 in Mumbai and its suburbs,��� said Alex Mathews, head of research, Geojit Financial Services.
���It will take some time for Tata Power to attract more customers. In the short run, the stock will remain in the range of Rs 950-1,200,��� he added.
Anmol Sekhri, research analyst with Bonanza Financial Services, expects Tata Power to build on its customer base over 1-3 years.
���However, number of customers cannot be a yardstick. Rather, it is the quality of customers and volume of units sold that count,��� commented Sekhri.
According to him, the Tata Power stock, at Rs 700-800, is a good buy. He advises investor to book profit over Rs 1,200.
Today, Tata Power shares ended 3.11 per cent higher at Rs 1,061.40 on the BSE. Intraday, the stock touched a high of Rs 1,094.
Geojit���s Mathew said, ���Tata Power trades at PE of 14.7, while Reliance Infra at 17.17. This makes Tata Power attractive. We are advising our investors to stay invested at declines for a one-year target of Rs 1,250-1,500.���
Mathew believes the stock will remain in the range of Rs 950-1,200 in the short run, while Arihant���s Singh sees 25-30 per cent upside from current levels.
The apex court held that Tata Power can supply power directly to consumers below 1000 kVA, as well as to high end consumers like the railways and factories.
���This verdict is going to be positive for the stock price and debtors of the company,��� said Tejvinder Singh, research analyst, Arihant Capital Markets.
According to Singh, as the company has got clearance to supply electricity to retail consumers, it will help in realisation of more tariffs.
Interestingly, retail segment in Mumbai and its suburb is currently dominated by Reliance Infrastructure.
To what extent Tata Power can penetrate in this segment remains to be seen. This depends on the revenue generation as well, an analyst said.
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Analysts do not see any immediate impact as Tata Power���s rival Reliance Energy is much ahead of it.
���In the short run, there will not be much impact on the stock as it has a customer base of around 24,000 as against Reliance Infra���s (earlier Reliance Energy) customer base of 2,40,000 in Mumbai and its suburbs,��� said Alex Mathews, head of research, Geojit Financial Services.
���It will take some time for Tata Power to attract more customers. In the short run, the stock will remain in the range of Rs 950-1,200,��� he added.
Anmol Sekhri, research analyst with Bonanza Financial Services, expects Tata Power to build on its customer base over 1-3 years.
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���However, number of customers cannot be a yardstick. Rather, it is the quality of customers and volume of units sold that count,��� commented Sekhri.
According to him, the Tata Power stock, at Rs 700-800, is a good buy. He advises investor to book profit over Rs 1,200.
ADVERTISEMENT
Today, Tata Power shares ended 3.11 per cent higher at Rs 1,061.40 on the BSE. Intraday, the stock touched a high of Rs 1,094.
Geojit���s Mathew said, ���Tata Power trades at PE of 14.7, while Reliance Infra at 17.17. This makes Tata Power attractive. We are advising our investors to stay invested at declines for a one-year target of Rs 1,250-1,500.���
Mathew believes the stock will remain in the range of Rs 950-1,200 in the short run, while Arihant���s Singh sees 25-30 per cent upside from current levels.
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