Introduction
Tata Power is one of the largest Indian electricity companies and has been in business since 1911. The company has a total installed capacity of 11,110 MW and supplies energy to seven states and union territories in India. With a presence in more than 60 countries, Tata Power is a leader in the energy sector, and its share price is closely watched by investors. In this article, we’ll discuss the prospects for Tata Power’s share price in 2023.
Tata Power’s Financial Performance
Tata Power has had a mixed financial performance in recent years. The company reported a net profit of Rs. 4,103 crore in FY20, which was a drop of 4.3% from the previous year. The company’s total income was Rs. 27,675 crore, a drop of 8.4% from the previous year. The company has been able to maintain its market share despite the fall in its financial performance.
Tata Power’s share price has been volatile but has been on an upward trend since the start of 2021. The share price rose from Rs. 68 in January 2021 to Rs. 95 in April 2021. The share price has been relatively stable since then, and is currently trading at around Rs. 95.
Growth Prospects for Tata Power
Tata Power is looking to expand its capacity and increase its market share in the coming years. The company is planning to set up a new coal-based power plant in Gujarat with an installed capacity of 4,000 MW. The company is also looking to invest in renewable energy sources, such as solar and wind, and is planning to set up a 2,000 MW solar power plant in Karnataka.
Tata Power is also looking to expand its presence in the international market. The company has signed a memorandum of understanding (MoU) with the government of Bangladesh to set up a 1,320 MW coal-based power plant in the country. The company is also looking to expand its presence in other countries in the region, such as Nepal and Bhutan.
Outlook for Tata Power’s Share Price
Analysts expect Tata Power’s share price to increase in the coming years due to the company’s growth prospects. The company is looking to expand its capacity and increase its presence in the international market, which should boost its financial performance. The company’s share price is also expected to benefit from the rise in demand for electricity in India.
Tata Power’s share price is also likely to benefit from the Government of India’s focus on renewable energy sources. The government has set a target of achieving 175 GW of renewable energy capacity by 2022 and this should benefit companies like Tata Power, which are looking to invest in renewable energy sources.
Conclusion
Tata Power is one of the largest electricity companies in India and has a presence in more than 60 countries. The company is looking to expand its capacity and increase its presence in the international market, which should boost its financial performance. Analysts expect Tata Power’s share price to increase in the coming years due to the company’s growth prospects and the Government of India’s focus on renewable energy sources. It is likely that Tata Power’s share price will be higher in 2023 than it is today.
