Tata Power shares jumped 2.2% on the BSE, reaching an intraday high of Ra 449.5, following the announcement that its subsidiary, Tata Power EV Charging Solutions, signed a memorandum of understanding (MoU) with Tata Motors to establish fast-charging stations in metro cities. By 11:25 AM, Tata Power shares were up 1.11% at Rs 444.7, while the BSE Sensex dropped 33.93 points to 82,928.78.
Under this MoU, the two companies plan to set up 200 fast-charging stations for electric commercial vehicles (CVs) across major cities like Mumbai, Delhi, Chennai, Bengaluru, and Kolkata. These stations aim to provide charging solutions for small electric CVs, with exclusive tariffs designed to reduce operating costs and increase profitability for customers. Tata Motors and Tata Power plan to make nearly 1,000 fast chargers accessible to electric CV users soon.
ICICI Securities had maintained a 'Buy' rating for Tata Power in its August 7 report, setting a target price of Rs 500. The brokerage views Tata Power as a comprehensive power solutions company, spanning electricity generation, distribution, trading, solar manufacturing, and Engineering, Procurement, and Construction (EPC) projects. Tata Power is currently setting up a 4 GW solar cell and module manufacturing plant in Tamil Nadu, expected to bolster supplies for its EPC and utility-scale projects and potentially improve margins.
On September 9, Tata Power announced the commencement of commercial production at its 2 GW solar cell line in Tirunelveli, Tamil Nadu. Additionally, as of June 2024, the company's solar rooftop and utility-scale EPC order book stood at Rs 130 billion.
Over the past year, Tata Power shares have surged 67.3%, significantly outperforming the BSE Sensex, which has risen 23% in the same period. (Business Standard)
