Tata Power Q3 -2022
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Tata power used to be darling of fund houses, DIIs & FIIs. But since last few quarters shares are moving from strong hands to weak hands, MF, DII & FII are reducing the stack & retail investors stack are gradually getting increased.
While promotor holding remains unchanged & pledge percentage reduced.
is this something to ponder about ??
Valuable thoughts are welcomed from the fellow investors.
retails & others
mutual funds
other domestics
FII
Disc : holding tracking quantities.
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What I find there is hardly any reduction of FII holding in Tata power in spite of the fact that FII’s have been net sellers in Indian market for all major stocks to a great extent. That way, I think FII stake is more or less in tact.
But yes, Mutual funds have reduced their holdings. This stock has given 100% return with in last 6 months. With the kind of volatility seen in the market during last 2 quarters , share holding pattern is definitely going to change due to churning of portfolio and booking profit.
I don’t follow MF holding , because their portfolio is something which I don’t understand … Though I too have some MF holdings. At a time when the banking sector is doing very badly for the last one year and there is no sign of change in market sentiments in favour of Banks. Still , MF’s have not reduced allocation in banking sector. All MF’s are holding on to banking stocks on an average 20-30%, even some of then are PSU banks.
Discl: Invested at lower level…and in the process of adding on decline. It is one of my long term bet. obviously, I may be biased.
Please do your own assessment before investment.
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Thanks for sharing @1957
I would prefer Tata Power over Adani Power for the following reasons.
-Quality of management. Tata Power is clear winner
-Adani leverages debt (most of Adani group companies have high debt) and we don’t know how the company will evolve since power is a highly regulated commodity
-Dubious promoters (There were some flags raised by SEBI earlier on few promoter entities)
-Most of the renewable energy business originally part of Adani group (Power) was spun off into a separate entities like Adani Green, Adani Transmission and the primary focus of Adani Power is predominantly thermal. Tata Power still holds all these businesses under single umbrella like Thermal, Solar and other Renewable, Transmission. As the world moves away from conventional to renewal, compliance to ESG norms etc., Tata Power can deliver good growth and attract more institutional investors.
-Synergy in the entire supply/value chain within Tata group entities (Automobiles, Charging stations, Battery life cycle management, Transmission & Generation)
Disc: Exited Adani Power and tracking position in Tata Power.
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Cabinet approval for mega power policy Cabinet approves amendment in Mega Power Policy for power projects - BusinessToday
I was just reading the annual report and noticed that Tata Power owns a substantial stake (49%) in Nelco. Ltd. Did not find any mention of it in this thread. Any thoughts if it changes Tata power’s value significantly?
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A big decision my Maharashtra Govt to buy more power from Tata Power https://twitter.com/redboxindia/status/1512364239037468677?s=24&t=xqCkuZ-2_aDq0PySDaH27A
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This is the latest update on Tata power
Saudi Arabia Fund has completed due diligence to take stake in Tata Power
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Investment in Tata power.pdf (368.3 KB)
Toaday’s Concall snippets:
- Entire Rs. 4000 crs will be used for the growth purposes in Tata power renewable Biz (TPREL).
- No recent plan for IPO for TPREL.
- TPREL currently have around 15000 cr as debt. so EV will be 49000 cr.
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Valuation of renewable division - 34k cr
Valuation of whole company - 87k cr
So excluding renewable division valuation is 53k cr and total debt is 50k cr
Doesn’t this numbers show that the company is currently trading at very high valuations since whoever has bought tata power in last 1-2 years has bought it just for the renewable division.
Disclaimer - was invested from lower levels booked profit few weeks ago