Tata Power’s share price continue to make gains for the third straight session Thursday as the company’s earnings for the quarter ended March beat street estimates. The numbers helped the stock continue its rally at the bourses after it was off to a dismal start this year hitting a fresh 52-week low in March.
The Investment: Given that the closing price on August 11, 2013, was ₹72.7 if your father made an investment of ₹10,000, he would have bought approximately 137 shares back then. Today, with the price at around ₹239, those 137 shares would be worth approximately ₹32,723.
Earnings: The company reported a consolidated net profit rise of 22.39%, reaching ₹972.5 crore, compared to the ₹794.6 crore profit in the same period the previous year. This performance surpassed consensus estimates which hovered around ₹7,500 crore. The firm’s revenue from operations increased by 4.5%year-over-year, amounting to ₹15,213.3 crore. Furthermore, the company’s EBITDA surged by 74% YoY, settling at ₹2,943.6 crore, with an EBITDA margin of ₹19.35%.
However, global brokerage firm CLSA maintained its “sell” rating on the stock, setting a price target of ₹195. They pointed out that one-off items were the primary drivers of the PAT, and at its current valuation, the stock seems pricey.
Price Action: Tata Power’s share price was trading 1.49% higher at ₹238.40 in the late hours of trading on Thursday.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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