Tata Power share price: Tata Power share price opened 1 per cent higher on Thursday morning but succumbed to the overall market sell-off, down over 3 per cent to Rs 225.3 apiece on the BSE intraday. 

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Earlier on Wednesday, the green energy subsidiary of Tata Power commissioned a 225-megawatt hybrid power project in Rajasthan, which will supply power to Mumbai, the company said in an exchange filing.

“Tata Power Green Energy Limited (TPGEL) has commissioned a 225 MW Hybrid power project in Rajasthan,” the company said. TPGEL is a wholly owned subsidiary of Tata Power.  

The power generated from the project will be supplied to Tata Power, Mumbai Distribution under a Power Purchase Agreement (PPA), valid for a period of 25 years, to fulfill its Renewable Purchase Obligation (RPO), the company further said in a regulatory filing. 

The revised power supply portfolio will rise to 38 per cent non-carbon power with the addition of 225 MW of hybrid power to Tata Power’s Mumbai customers, the company said, adding that it will be nearly double the mandatory RPO obligation.   

This is the first hybrid project developed by Tata Power consisting of recently commissioned 225 MW of Solar power at Noorsar and existing wind assets of 96 MW, which is expected to generate about 700 MUs of energy per year.  

The counter in the last one year has surged over 72 per cent as compared to over a 6 per cent rise in the S&P BSE Sensex. It had hit a 52-week high of Rs 298 per share on April 07, 2022, while touched 121.75 per share as a 52-week low on August 23, 2021.  

Zee Business research team recommended to Buy Tata Power shares for a target price of Rs 280 per share for a time horizon on 12 months on the back strong fundamentals

Tata Power earlier last week reports robust first-quarter earnings in the financial year 2022-23. The consolidated PAT before Exceptional Items up by 90% at Rs 884 crore vs Rs 466 crore year-on-year due to improved performance across all businesses mainly profits from coal companies, it said.  

Similarly, the consolidated revenue of Tata Power grew by 48 per cent to Rs 14,776 crore in the April-June quarter of FY23 against Rs 9,974 crore in Q1FY22.