Green Energy Stock in Focus: Tata Power

As the global economy increasingly acknowledges the necessity of addressing climate change and reducing carbon emissions, green energy stocks are taking center stage. 

In this context, Tata Power Company Limited is capturing investor attention with its strong financial performance and strategic advancements in sustainable energy solutions.

With its share price currently trading between INR 436.50 and INR 448.85, Tata Power reported a 15.19 percent year-on-year (YoY) jump in net profit to INR 895 crore for the fourth quarter that ended March 31, 2024. This is an increase from the net profit of INR 777 crore posted in the corresponding quarter of the previous fiscal year.

Tata Power's revenue from operations saw a rise, increasing by 27.2 percent to INR 15,846.6 crore compared to INR 12,453.8 crore in the same period last year. At the operating level, EBITDA (earnings before interest, tax, depreciation, and amortisation) grew by 25.5 percent to INR 2,331.9 crore in Q4 FY24 from INR 2,027.8 crore in the corresponding period of the previous fiscal year. 

The board has recommended a final dividend of INR 2 per equity share of INR 1 each (at 200 percent) for the financial year ended March 31, 2024. 

A major highlight for Tata Power in Q4 FY24 was the commencement of production at its 4.3 GW cell and module manufacturing facility in Tirunelveli, Tamil Nadu. This facility commercially produced around 130 MW of modules during the quarter. 

Tata Power's inclusion in the Ministry of New and Renewable Energy's (MNRE) Approved List of Models and Manufacturers (ALMM) scheme further strengthens its position to contribute significantly towards the PM Surya Ghar Yojana.

Tata Power is on an accelerated growth trajectory, aiming to achieve around 70 percent of its capacity from non-fossil-based fuels by 2030. As of March 31, 2024, the company has 4.5 GW of operational renewable capacity and an additional 5.5 GW of projects under implementation, bringing its total green energy portfolio to over 10 GW.

Currently, Tata Power has a market cap of INR 1,41,138 crore, with a 52-week high/low of INR 464.20 and INR 204.10, respectively. The company's future prospects look promising, underpinned by strong financial growth and strategic initiatives. These factors position Tata Power as a key player in the renewable energy market.

For investors focusing on the green energy market, Tata Power is certainly a company worth watching. Stay tuned to Energetica India for the latest updates on Tata Power and other promising green energy stocks shaping the future of sustainable investing.