Tata Power, a leading integrated energy company, was among the top gainers in the S&P BSE 500 Index last week. The stock, which has been in an uptrend for the past month, posted a weekly gain of 26 percent. There were multiple factors at work.
The significant rise in energy demand with the recovery of economic activity, recently, has stimulated many energy and energy stocks. Apart from this, recent orders and deals for Tata Power in the solar and electric vehicle charging segment have boosted the inventory. Last week, the company’s subsidiary, Tata Power Solar Systems, was awarded a solar EPC project worth Rs 538 crore (six per cent of the current order book).
On October 5, TVS Motor announced a strategic partnership with Tata Power to create a dedicated electric two-wheeler charging infrastructure across the country and to deploy solar technologies at TVS Motor sites.
Tata Power’s strong strength (nearly a third of generating capacity), the growing presence in clean energy and low leverage (net debt to equity of 1.57x as of June 2021 vs. 1.81x last year), have also attracted a lot of investor interest. .