Result Update: Tata Power - Accumulate - TP Rs. 89 - Kotak

Tata Power reported higher than expected recurring profits in the quarters aided mainly by higher profitability at its coal mining operations.

Demand for power has continued to remain weak which is reflected in decline in standalone revenue.

Coal prices have risen in recent months which has improved profitability of coal mining investments.

We value the stock at 1.4x FY19 book value and arrive at a target price of Rs 89 (unchanged) and maintain "Accumulate", thereby advising clients to buy on declines.

Shares of TATA POWER CO.LTD. was last trading in BSE at Rs.80.95 as compared to the previous close of Rs. 80.35. The total number of shares traded during the day was 206337 in over 2302 trades.

The stock hit an intraday high of Rs. 81.3 and intraday low of 79.5. The net turnover during the day was Rs. 16615979.

Source : Equity Bulls

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