Why Tata Power is Giving Multibagger signs?
Tata group is one of the largest and prominent groups in India. In India, Tata Power runs in 35 locations. Furthermore, it runs in South Africa, Indonesia, Singapore, Bhutan and various Gulf countries. Most of their investments are on solar power. Presently, Tata group is buying back shares. Buying back of shares can be a sign of something big to happen.
Tata Power is mainly focused in below areas such as,
- Renewable Energy Generation
- Conventional Energy Generation.
- Solar roof top
- EV Charging Infrastructure.
- Solar water pump
- Solar EPC projects.
Overall, the Tata Power is giving some Multibagger signs. According to various internet sources, the group is showing interest in planting saplings. By doing so on the sides of various major cities, the group is going out to go green. Additionally, Tata Power is building 1 lakh solar charging stations. This is in alliance with Tata Motors. It is expected to be done by 2021.
Right now, diesel and petrol costs are reaching ₹100 per liter. Most likely, it might go up a lot in future. Consequently, people will start using Electric Vehicles in future. By 2030, the transport industry will entirely shift towards EVs, said the transport minister of India in 2017. Tata Sons, the promoters of Tata Group releases pledge on 1.77 crore shares (0.56 per cent equity) of the utility company, Tata Power.
At present, Tata Power drives the Mumbai city. It also has received the rights to power Odisha’s 5 circles. They provide super-fast charging stations for Tata Motors cars as well as others. They also drafted a contract with Morris Garage for providing super-fast chargers. Considering these facts, Tata Power is giving some Multibagger signs for sure.
In September 2018, Tata Power signed a contract with Hindustan Petroleum for the making of charging stations. Recently, Tata Power said that they started a contract to build 60 MW solar project for Gujarat. They will deliver the energy to Gujarat Urja Vikas Nigam Limited (GUVNL). This agreement is in motion for a 25 years from the scheduled date. Consequently, all these shows the Multibagger signs for the Tata Power company.
Over the coming few years, the company’s revenue could rise by 49%. Moreover, the Fundamentals of the company is improving since 2 years. This is a sign of a clear positive future for them. In comparison with other stocks in market, Tata Power’s share price is almost stable. It also indicates that it is unlikely for the stock to drop lower.