Tata Power up as its arm ties up with Tata Motors for EV charging stations
Source: Business Standard
Tata Power shares soared 2.2 per cent on the BSE and touched an intraday high of Rs 449.5 per share on Thursday’s trading session. Buying in the stock came after Tata Power EV Charging Solutions, a subsidiary of Tata Power Renewable Energy, inked a memorandum of understanding (MoU) with Tata Motors to set up fast charging stations in metro cities.
At around 11:25 AM, shares of Tata Power were up 1.11 per cent at Rs 444.7 per share on the BSE. In comparison, the BSE Sensex was down 33.93 points at 82,928.78.
With this MoU, Tata Power EV Charging Solutions and Tata Motors, together will set up 200 fast-charging stations for electric commercial vehicles (CV) in all metros cities, including Mumbai, Delhi, Chennai, Bengaluru, Kolkata.
These stations will provide charging solutions for small electric commercial vehicles. Further, Tata Motors and Tata Power will provide exclusive charging tariffs for electric CVs from its own stables, resulting in lower operating costs and increased profitability for its customers.
As per the company’s exchange filing, electric CV users will be able to access almost 1,000 fast chargers located at various locations soon.
ICICI Securities, in a report dated August 7, had maintained its ‘Buy’ rating on Tata Power, with a target price of Rs 500.
The brokerage believes Tata Power is emerging as an end-to-end power solutions company, with a presence spread across electricity generation, distribution and trading, apart from solar manufacturing and solar utility-scale and rooftop Engineering, Procurement, and Construction (EPC) projects.
Further, Tata Power is setting up a 4 GW solar cell and module manufacturing plant in Tamil Nadu, which is likely to aid the company secure supplies for its EPC and utility scale projects. Not only that, owing to synergies within its various businesses, the plant may also aid margins going forward.
In a filing on September 9, Tata Power had informed investors that the company has commenced commercial production from the 2GW solar cell line at its manufacturing facility in Tirunelveli, Tamil Nadu.
That apart, Tata Power’s Solar rooftop and utility scale EPC order book stood at Rs 13,000 crore as of June 2024.
In the past one year, shares of Tata Power have gained 67.3 per cent, compared to the BSE Sensex’s rise of 23 per cent during the same period.
First Published: Sep 13 2024 | 12:12 PM IST
