Sell Tata Power Company Ltd., target Rs 73.0 : CLSA

CLSA has Sell call on Tata Power Company Ltd. with a target price of Rs 73.0. The current market price of Tata Power Company Ltd. is 75.6. Time period given by analyst is year, when Tata Power Company Ltd. price can reach defined target. The EBITDA at Mundra declined 31 per cent on a YoY basis due to lower plant availability. The June quarter earnings were partially offset by strong performance from Maithon plant, Zambia hydro project. Tata Tele stake buyback from Docomo for an estimated value of Rs7.8bn is a potential hit to the balance sheet. The global investment bank sees little upside trigger until the Mundra tariff issue is resolved.