Tata Power Rating: Buy; Primed for sustainable and clean growth
We hosted Dr. Praveer Sinha, MD & CEO, Tata Power (TPCL), at the Edelweiss ESG CXO e-Series. Key highlights: (i) Tata Power 2.0 is a mega transformation from legacy to new businesses to achieve decarbonisation by investing in sunrise businesses–renewables, EV, micro grids, etc; (ii) social pillar target to double gender diversity ratio to 18% by 2025; (iii) robust governance structure in place with best-in-class practices; (iv) identified eight areas to improve its ESG rating.
The realignment of its growth model will top the sustainability index, which is more crucial in our view. TPCL is primed for sustainable (23% EPS CAGR) and clean growth. Retain Buy with revised TP of `120 (earlier `95).
