Tata Power up as its unit joins forces with Tata Motors to set up EV charging stations

2 minutes of reading Last update: Sep 13, 2024 | 12:17 PM IST

Shares of Tata Power rose 2.2 per cent on the BSE to touch an intraday high of Rs 449.50 per share in Thursday’s trading session. The buyback comes after Tata Power EV Charging Solutions, a subsidiary of Tata Power Renewable Energy, signed a memorandum of understanding (MoU) with Tata Motors to set up fast charging stations in metro cities.

At around 11:25 am, Tata Power shares were up 1.11 per cent at Rs 444.7 per share on the BSE. In comparison, the BSE Sensex was down 33.93 points at 82,928.78.

Under this agreement, Tata Power EV Charging Solutions and Tata Motors will jointly set up 200 fast charging stations for electric commercial vehicles across metropolitan cities including Mumbai, Delhi, Chennai, Bengaluru and Kolkata.

These stations will provide charging solutions for small electric commercial vehicles. Additionally, Tata Motors and Tata Power will provide exclusive charging tariffs for electric commercial vehicles from their own stables, which will translate into lower operating costs and greater profitability for customers.

According to documents filed by the company, users of electric commercial vehicles will soon be able to access almost 1,000 fast chargers distributed across various locations.

ICICI Securities, in a report on August 7, maintained a ‘Buy’ rating on Tata Power shares and set a target price of Rs 500.

The brokerage believes that Tata Power is emerging as a total energy solutions company whose business includes generation, distribution and trading of electricity, besides solar power generation, utility-scale engineering, procurement and construction (EPC) projects and roofing projects.

In addition, Tata Power is setting up a 4 GW solar cell and module manufacturing facility in Tamil Nadu, which is likely to help the company secure supplies for EPC and utility-scale projects. Moreover, the facility could also help in future margins due to synergies across businesses.

In a filing on September 9, Tata Power told investors that the company has commenced commercial production of 2 GW of solar cells at its manufacturing facility in Tirunelveli, Tamil Nadu.

Besides, Tata Power’s order book for rooftop solar and utility-scale EPC systems stood at Rs 13,000 crore as of June 2024.

Tata Power shares have gained 67.3 per cent in the past year, while the BSE Sensex index has risen 23 per cent in the same period.

First edition: Sep 13, 2024 | 12:12 PM IST