Tata Power shares up 180% in one year; PLIs likely to sustain momentum
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Shares of Tata Power have risen around 180 per cent in the past one-year period evidently due to its strong investment in EV charging stations, solar infrastructure and other expansions.
In early February 2021, the company's share price was Rs 90, and now it's over Rs 250, which is 183 per cent up.
Tata Power is an integrated power company, present across the entire power value chain of conventional and renewable energy, power services and next-generation customer solutions including solar rooftop and EV charging stations.
Analysts expect the additional allocation for the solar sector as PLIs is a positive for the solar manufacturers.
In a report HDFC Securities pointed out that proposals such as additional financial allocation under the PLIs for manufacturing of solar modules will boost the sector.
In the Budget 2022, Finance Minister Nirmala Sitharaman allocated an additional Rs 19,500 crore in PLI incentives to manufacture solar modules.
Besides, the proposal to replace existing safeguard duty with basic custom duty on solar cells being increased from 20 to 25 per cent and on solar modules from 20 to 40 per cent is expected to aid the solar industry.
Also, the proposal of issuing "green bonds" for mobilising resources for setting up green infrastructure projects in the public sector will further support the sector.
India aims to take the country's total non-fossil-based installed electricity capacity to 500 giga watt by 2030.
