Shares of Tata Power Co. posted their longest winning streak in more than five months on the company's plan to invest in renewables.
The company will invest more than Rs 75,000 crore ($9.5 billion) in renewables over the next five years, and will expand into solar irrigation pumps and EV charging, Chairman N Chandrasekaran said during its annual general meeting.
Tata Power has a generation capacity of 13.5 gigawatt, with 34% coming from renewable sources. The company, Chandrasekaran said, aims to more than double its generation capacity to over 30 GW by FY2026-27.
It will focus on new-age energy solutions—solar rooftop, EV chargers, solar pumps, smart metering and energy management solutions—with these investments. The company also partnered Blackrock Real Assets and Mubadala Investment Co. and received an investment of Rs 4,000 crore to scale-up green businesses and solution.
Earlier this week, it signed a pact with the Tamil Nadu government to set up greenfield solar cells and panels manufacturing plants in Tirunelveli for Rs 3,000 crore. Each of the solar cells and panels manufacturing plant will have a capacity of 4 GW and will be built in 16 months.
Shares of Tata Power rose nearly 3% in intraday trade, and closed 2.56% higher—the best since June 21. The stock gained for the sixth straight session, up nearly 9% during the period.
Of the 24 analysts tracking the company, 10 maintain a ‘buy', four suggest a ‘hold' and 10 recommend a ‘sell', according to Bloomberg data. The average of the 12-month consensus price target implies an upside of 5.4%. The stock has fallen 0.41% so far this year compared with 6.5% losses in the Nifty 50.
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