Tata Power wants to break up with coal and investors love it
- Shares of the power generation company have doubled investors’ money in the last one year.
- The company has committed itself to transition towards renewable energy and limit its coal based production.
- Praveer Sinha of Tata Power shared in a media interview that the company has nearly reached 1,000 electric vehicle charging stations.
AdvertisementShares of Tata Power were on an uptrend as it gained 3% on September 30. Not only today, but the stock has also been surging since last one year as the company has charted out its plans to expand business into clean energy.
The company had reportedly unveiled its plans to transform the energy company’s generation portfolio toward clean and green in order to reach carbon neutrality before 2050.
To switch to clean energy, the company will cease to build new coal-based capacity and will not acquire coal-based stressed assets.
Apart from its foray into the clean energy space, the company’s efforts in the electric vehicle charging segment has also taken investor’s attention. This has led to a huge rally in the company’s stock in the last one year where it almost tripled investors' money.
In an interview with CNBC TV-18, the company today said that it has nearly reached 1,000 electric vehicle (EV) charging stations. Besides, it allayed investors' concerns regarding the rise in coal shortage.
In recent times, rise in prices of crude oil and liquified natural gas (LNG) has influenced prices of coal. “Coal shortage is a temporary phenomenon and we should be out of this in a few weeks,” said Praveer Sinha, chief executive officer at Tata Power.
|Last 5 days||9.42%|
|Year to date||102%|
|Last one year||194%|
Harshvardhan Dole, vice president of institutional equities at IIFL reportedly said that “That (Tata Power) is one stock that we like, mainly because they are taking pragmatic measures to ensure that the opportunities which are arising from green energy, they are well-placed to capture that. For example, they are quite gung-ho on establishing or expanding their renewable portfolio. They are also quite aggressive in terms of tapping the elite opportunities coming from EVs, such as EV charging, smart metering etc., which we are not seeing in other private players.”
SEE ALSO: Indian Overseas Bank lost six years and half its business to clean up its bad loans but the market is cheering
Meesho raises more than half a billion dollars, in the fourth biggest funding round this year
Popular on BI
- Govt approves PLI scheme for making drones with outlay of Rs 120 cr, comes out with norms
- Apple transportation through drones to become reality in tribal Kinnaur district of HP
- Researchers develop device that uses sound waves to separate blood-based nanoparticles
- 5 Bihar villages to be developed into human-carnivore coexistence zone
- Delhi's air quality will likely improve from Sunday evening, says IMD