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Tata Power hits the significant milestone of Rs. 300 per share; do you own it?

07 December 20235 mins read by Angel One
The company’s shares have delivered an impressive multibagger return of over 300% to their shareholders over the last three years.
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Tata Power, a prominent Tata Group company, is primarily involved in the generation, transmission, and distribution of electricity. The company experienced a significant surge in its share price today, surpassing a significant milestone by exceeding Rs 300 per share.

At the beginning of today’s trading session, the stock opened at Rs 295.90 per share, indicating an approximate 1% increase compared to the previous day’s closing figure of Rs 294.10 per share on the BSE. As of the time of writing this article, the shares are currently trading at Rs 307 per share on the BSE. Notably, the stock has reached its 52-week high price today, reflecting strong demand in the market.

The company’s current market capitalisation stands at Rs 98,144.85 crore. The stock has generated a return of 36% over the past year and an impressive multibagger return of 329% in the last three years. Let’s observe the company’s stock journey.

Date >>  02-Jan-01  09-Oct-03  09-Jan-04  24-Sep-07  30-Sep-21  07-Dec-23 
Days  1010 92 1354 5120 798
Stock Price  10 20 40 80 160 300

When analysing the stock, it was valued at Rs 10 per share initially in 2001. In 2003, it doubled, taking almost 1010 days to reach Rs 20 per share. Subsequently, it only took 92 days to double again, soaring from Rs 20 to Rs 40 per share. However, it required 1354 days to double once more, reaching Rs 80 per share. The longest duration it took to double during this period was 5120 days. Nevertheless, the stock hasn’t yet reached its double price of Rs 320 per share, although it did reach a significant milestone of Rs 300 per share within 798 days.

Stock Price Chart (Weekly): 

Financial Overview: 

In the second quarter of FY24, the company recorded revenues of Rs 15,738 crore, marking a growth of 12.17% compared to the corresponding quarter of the previous year, when the revenue was Rs 14,031 crore. The company attained an operating profit of Rs 2,771 crore for the quarter, a notable increase from the operating profit of Rs 1,760 crore reported in the same quarter of the previous year. The company’s operating profit margin was 18% during this quarter. Furthermore, the company reported a net profit of Rs 1,017 crore, showing growth from the net profit of Rs 935 crore recorded in the same period last year.

The company’s Return on Capital Employed stands at 11.7%, while its Return on Equity is at 12.6%. Additionally, the shares of the company are trading at a Price-to-Earnings ratio of 28.8 times in the markets.

Business Overview: 

The Tata Power Company Limited operates as an integrated power firm based in India. Its primary focus lies in the generation, transmission, and distribution of electricity. The company’s divisions encompass Generation, Renewables, Transmission and Distribution, and Others.

Within the Generation sector, the company produces power using hydroelectric and thermal sources (coal, gas, and oil) from plants either owned or operated under lease agreements, along with associated ancillary services. The Renewables division is dedicated to generating power sourced from renewable energy like wind and solar. As for the Transmission and Distribution segment, it manages the transmission and distribution network, sales of power to end consumers through the distribution network, and associated ancillary services. Additionally, it oversees the company’s power trading endeavours. Under the Others segment, the company engages in project management contracts and infrastructure management services. It also involves itself in property development, leasing oil tanks, and satellite communication.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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