Tata Power Limited

Stock Opportunities Not-so-Hidden Gems
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I found this Fireside chat with Anmol Jaggi, Founder, BluSmart Mobility really interesting.

Not only do they have an interesting business model (ride hailing with an all-EV fleet + EV charging infra for captive consumption and for others), he makes a valid argument, against the concept of EV charging stations piggybacking on the existing fuel refuelling stations. He says its not feasible since you would have each EV hogging the station for few hours. Plus from a safety perspective he says it doesnt seem to be safe to have high voltage wires and a charging station beside the fuel bunkers.

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Its great to see that the company is looking at its Green Energy mission from a holistic and social window as much as from a commercial perspective. They are delivering energy access to the bottom of the pyramid populace, in turn jump-starting the economic activities in the lives of these communities. The grid design is simple, uncomplicated and its great to see that they have planned a decent level of automated monitoring to prevent pilferage and losses that can otherwise ruin such initiatives. Company’s stated objective is to bring 5 million families to such microgrids in 10 years, touching 25 million lives.

Disc: Invested, views may be biased

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India’s Tata Group plans $300 million unit to assemble semiconductors | TechRadar

Will this be under Tata Power?

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From what I have read more likely to be under Tata ELXSIhttps://www.techradar.com/in/news/indias-tata-group-plans-dollar300-million-unit-to-assemble-semiconductors

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Tata Group News: Tata Group’s future growth will hinge on four themes - The Economic Times Tata Group News: Tata Group's future growth will hinge on four themes - The Economic Times

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I N F O R M A T I V E

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Comments section has some good insights.

  1. Tata motors is no. 23 in the world by market cap. Maruti Suzuki is bigger.
  2. In semiconductor business, the talks with Taiwan companies didn’t make much headway due to low incentives and raw material shortage in India.
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The commentators are not always right! Most people confuse themselves and unknowingly confuse others too.

The fact is that Tata Motors occupies 5th position in Global Automobile maker and 31st position in fortune 500 list as the most regarded company ( all industries rank) . Market cap can not be taken as bench mark as a lot of factors varies from country to country which determines stock price. The most important factor with Tata Group is the ESG…CSR…and I am sure in the coming days …ESG is going to determine the share price… they make enough profit in every business such that All stake holders are taken care of…yes, you may find their ROCE and ROE may be less in some Tata companies …there are many external factors such as economy, business climate etc etc…which influence various business

The confusion arises as some people refer Tata Motors (TML) as a Car maker, some say Tata Motors means JLR, others mean Tata Motors as a EV car maker , in Delhi people say that TML is the largest CNG Bus maker because they see 10,000 CNG buses running in and around Delhi- in fact TML occupies No 1 slot globally in CNG buses In terms of numbers.

However , Very few know that Tata Motors makes every kind of Automobiles except 2 wheelers & Farm tractors.
Very few companies in the world make such a wide range starting from small pick-ups, SCV, LCV, ICV, MCV, HCV, Tractor trailer , tippers, dumpers to economy mini cars like Nano ( though discontinued recently), SUV’s, Luxury cars like JLR and of course it is one of the fastest EV car maker - when I say fastest …the speed at which they are ramping up production of EV cars …and there is a waiting period today…and the kind of EV infrastructure they are creating with Tata Power, Tata chemical, Tata Elexi …unthinkable …non stoppable …unique in the whole world…

Every Tata company is unique in its own kind…TCS being the largest employer in the world for the last 6 consecutive years.
Tata group employs more than All leading companies together …it has more employees than Toyota, Coke, Facebook, Microsoft & Google combined,…

Tata chemicals among top 3 largest Soda ash maker…any way I can go on and on…

Discl: I may be bit biased since I am holding all Tata stocks …I have also worked with Tata’s for more than 30 years

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The article mentions that the proposed venture may function as a captive supplier for Tata Motors and Tata Power! Also hints at the new unit being within Elixi. It is not clear which Tata Company will ultimately own and operating this new venture. Any ideas based on other articles you may have read?

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Solar Module Manufacturing Capacity to jump 400% with Rs 50,000 crore investments by FY 2025- as per Crisil.

According to the report, the 40 percent custom duty on imported modules and the Production-Linked Incentive (PLI) scheme will not only eliminate existing price gap but may even make domestic module competitive by 2-3 cents/watt at current prices.

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Apollo tyres- Tata power to set up EV charging stations at Apollo tyre Branded out lets across the country.

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I am trying to understand the following - Assuming this deal does happen, are the renewables valuations already baked into the Market Cap for Tata Power?

Supposing this deal goes through for a renewables valuation of 6Bn USD, that’s 45000 Cr INR. So Tata Power’s traditional generation and transmission businesses will be valued at 36000 Cr (Total MCap as on date is 81000 Cr). FY21 sales from Generation and Transmission was INR 30000 Cr and current run-rate in FY22 is 36000 Cr, so this part of the business is valued at about 1X Sales. Is 1X Sales a discount in valuation for the generation and transmission business or is it fairly valued?

For comparison, NTPC trades at 1.05x Sales, CESC at 0.9x Sales, Torrent Power at 1.9X Sales.

Tata Power
Tata Power701×206 16.5 KB

Requesting comments please.

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