Tata Power shares in focus after subsidiary inks supply pact with NTPC arm

Shares of Tata Power are in focus today after the Tata Group firm’s distribution arm inked a 200-MW medium-term hydro power purchase agreement with NTPC Vidyut Vyapar Nigam Ltd (NVVNL) to meet the projected peak demand. Tata Power stock was trading flat at Rs 197.20 in the current trading session against the previous close of Rs 196.95 on BSE.

Stock of Tata Power has lost 23.54% in a year and fallen 5.06 per cent in 2023. Total 1.02 lakh shares of the firm changed hands amounting to a turnover of Rs 2.01 crore on BSE. Market cap of the firm climbed to Rs 63,012 crore in the early session today.

In terms of technicals, the relative strength index (RSI) of the stock stands at 48.1, signaling the stock is neither oversold nor overbought. Tata Power has a one-year beta of 1.2, indicating very high volatility during the period. Tata Power shares are trading higher than the 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.

Tata Power Delhi Distribution Ltd (Tata Power-DDL) is one of the major suppliers in the national capital.

NVVNL, the trading arm of power NTPC Ltd, will supply hydropower to the Tata Group firm for the next five years in May-September, beginning 2023, Tata Power-DDL said.

The collaboration will help Tata Power-DDL, a power distribution company (discom), expand its green portfolio, it added.

Tata Power logged a 91% rise in net profit to Rs 1052.14 crore due to rising power demand and the festive season. Consolidated net profit stood at Rs 551.89 crore in the quarter ended December 2022. Revenue rose 29.5% to Rs 14,129 crore in Q3 from Rs 10,913 crore in the December 2021 quarter. EBITDA climbed 43% to Rs 2334 crore in the December quarter against Rs 1634 crore in the December 2021 quarter.

Tata Power is one of India's largest integrated power companies and, together with its subsidiaries and jointly controlled entities, has an installed/managed capacity of 14,101 MW. The company has its presence across the entire power value chain—generation of renewable as well as conventional power including hydro and thermal energy, transmission & distribution and trading.

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