200% Dividend: Tata Power Declares 15% YoY Rise In Net, Big Update Inside; Buy Or Hold?

Tata Power Company Ltd share witnessed marginal dip of 0.19% on BSE to settle at Rs 435.45 per share. Tata Power Company share zoomed 115% in last 1-year. Today the Board of Directors of the company recommended a final dividend of Rs 2 per equity share of Re 1/- each. The company today announced a surge of 15.19% year-on-year (YoY) in net profit to Rs 895 crore for the quarter ended March 31, 2024 as against the net profit of Rs 777 crore announced in the corresponding quarter of last year, as per the BSE filing.

Life Insurance Corporation of India (LIC) has 7.90% stake in Tata Power Company with 252,564,287 shares while General Insurance Corporation Of India has 1.01% stake in the company with 32,143,500 shares of the firm. More details below:

Tata Power Recommends Dividend: As per the BSE filing of the company, "The Board has recommended a final dividend of Rs 2.00 per Equity Share of Re 1 each (@ 200%) to the Members for the financial year ended March 31, 2024. The dividend recommended by the Board is subject to the approval of the Members at the forthcoming 105th Annual General Meeting ('AGM') of the Company scheduled to be held on Tuesday, July 16, 2024."

Tata Power Company Q4: The energy sector company declared its revenue from operations for the March 2024 quarter at Rs 15,846.6 crore, up 27.2% as compared to Rs 12,453.8 crore in the similar quarter of last year. The EBITDA, at the operating level, zoomed 25.5% to Rs 2,331.9 crore for Q4 as against Rs 2027.8 crore in the same quarter of last fiscal. Meanwhile, the EBITDA margin declared at 14.7% for the quarter under consideration as against 16.3% in the similar period of last fiscal.

Tata Power Company Share Performance: The 52-week high price of Tata Power Company share on BSE is Rs 464.30 per share (as on 03/05/2024) and 52-week low price is Rs 201.75 per share (as on 19/05/2023), respectively. Tata Power Company Ltd share fell 3% in 1-week, gained 32% year-to-date, soared 71% in last 6-months, and offered attractive returns of 115% in last 1-year. In last 5-years, Tata Power Company shares gained 575%.

Tata Power Company Plans 66% Higher Capex: The energy sector company planned 66% higher capital expenditure of Rs 20,000 crore in current fiscal compared to a year ago, which will emphasise on projects supporting energy transition and India's net-zero emission target by 2070. During the year ended March 2024, the capex (capital expenditure) was approximately Rs 12,000 crore, said Tata Power's CEO Praveer Sinha. "This year we are targeting to spend around Rs 20,000 crore," he said in reply to a question on company's planned capex. Sharing the breakup of the investment plant, Sinha said about 50% will be on renewables (projects). The remaining will be mix of transmission, distribution and conventional projects, according to a PTI report.

Should You Buy Tata Power Company Share? According to Anand Rathi, "Tata Power shares have a strong base at Rs 420 apiece whereas it is facing resistance at Rs 420 per share." The analyst has suggested to hold the stock, keeps stop loss at Rs 420 as the stock is facing resistance at Rs 465. The moment it breaks this hurdle, Tata Power Company share may go up to Rs 485 to 490 per share level. The brokerage firm has suggested new investors to buy Tata Power Company shares at the current level with short term target of Rs 485 apiece. The analyst has strictly asked to maintain the stop loss at Rs 420 per share.

Tata Power Stock Split History: Tata Power Company split the face value of its shares once since September 26, 2011. Tata Power Company last split the face value of its shares from Rs 10 to Re 1 in 2011.The share traded ex-split from September 26, 2011.

Tata Power Company About: It is India's Largest Integrated Power Company, present across the entire power value chain of conventional & renewable energy, power services and next-generation customer solutions including solar rooftop and EV charging stations, as per its official website.

Disclaimer: The stock has been picked from the brokerage report of Anand Rathi. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.