Tata Power subsidiary inks MoU with SIDBI for MSME solar financing; Stock up

Shares of Tata Power jumped nearly 1 percent in early trade on September 13, after its subsidiary signed a memorandum of understanding (MoU) with SIDBI on September 12.

Tata Power Solar Systems Limited (TPSSL) has signed an MoU with the Small Industries Development Bank of India (SIDBI) to offer an easy financing option for MSMEs.

At 9:17 am the Tata Power stock was trading 0.82 percent higher at Rs 265.10 on NSE.

TPSSL and SIDBI launched ‘The Big Solar Fest’ offering customized & innovative financing solutions with zero processing fees for solar loans, according to a BSE filing on September 12.

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Brokerage Views

CLSA has assigned a ‘Sell’ rating to Tata Power with a target price of Rs 195 per share. Lower coal profit drives an 11 percent YoY fall in profit after tax (PAT). The brokerage firm further stated that “renewables IPP business gets a rate and climate risk jolt, quality of results remains challenging with one-offs supporting profit after tax. Stock remains expensive at a 22x FY25 PE.”

Stock Performance

Tata Power stock has delivered 29.50 percent returns over the last six months. The benchmark Nifty50 index has returned 16.55 percent over the same duration.

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