Tata Power's arm pacts with NHPC to install rooftop solar on government buildings; stock down

Tata Power Company Ltd's subsidiary -- Tata Power Renewable Energy Ltd (TPREL) -- on Thursday announced it entered into a Memorandum of Understanding (MoU) with NHPC Renewable Energy Ltd (NHPC-REL) to spearhead the installation of rooftop solar projects across government buildings of Central ministries, states, and Union Territories.

This initiative, under the ambitious PM Surya Ghar Yojna Scheme, aims for complete solarisation of government-owned buildings by December 2025, the Tata Group firm stated in a BSE filing.

"This powerful alliance is set to support the transformation of India's energy landscape by harnessing the untapped potential of rooftop spaces on government buildings, fostering a cleaner and greener future," it also said.

The company mentioned that the Ministry of New and Renewable Energy (MNRE) has appointed NHPC Ltd as a scheme implementing partner to drive the rooftop solar projects, which will be carried out by its wholly-owned subsidiary, NHPC-REL.

Deepesh Nanda, CEO & MD of Tata Power Renewable, said, "We are excited to join hands with NHPC-REL in this significant venture to solarize government buildings across India. This collaboration represents a major step forward in our shared vision of a sustainable and green energy future. By leveraging our combined strengths, we are confident in achieving our goal of 100 per cent solarisation by 2025, setting a benchmark for renewable energy projects in the country."

On the stock-specific front, Tata Power shares were last seen trading 1.29 per cent lower at Rs 431.25 today. At this price, the stock has risen 30.78 per cent on a year-to-date (YTD) basis.

The counter was trading lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 35.09. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 52.16 against a price-to-book (P/B) value of 8.84. Earnings per share (EPS) stood at 8.38 with a return on equity of (RoE) 16.95.