Mumbai-based electric utility company Tata Power's shares were down three percent at Rs 131.10 on the BSE on Monday soon after hitting a 52-week high, despite the company reporting its seventh quarter of strong earnings.

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The Tata Power stock earlier saw an intraday low of 3.03 percent at Rs 131.05 on the BSE. Tata Power shares sharply underperformed the S&P BSE Sensex index, which was flat.

Tata Power shares traded lower for most of the day having switched direction shortly after opening at a 52-week high of Rs 137.90 on the bourse.

After the market hours on Friday, Tata Power reported a nearly 74 percent jump in net profit to Rs 465.69 crore for the quarter ended June 30. Its total income rose to Rs 10,145.89 crore from Rs 6,540.42 crore in the corresponding period a year ago.

Tata Power has shown improvement in all parameters for the seventh quarter in a row and the momentum is expected to continue in the coming quarters, CEO and Managing Director Praveer Sinha told CNBC-TV18.

The company is seeing a consistent performance in transmission projects. It will see the whole year's impact on Odisha distribution companies in the coming quarters, he said.

Sinha also said two cyclones in May impacted the company's power generation capacity in Q1. The company expects to divest Zambia and Georgia assets this year, which will help it improve its balance sheet, he added.

Here's what brokerages say on the company's Q1 performance:

Edelweiss

The brokerage has maintained a 'buy' call on the stock with a target price of Rs 170 apiece. The company began FY22 on a strong note on the PAT front, according to Edelweiss. The company posted a Rs 3,000 crore sequential increase in net debt largely due to the refinancing of perpetual debt, it said.

There was a strong ramp-up in the EPC business, but with less than 4% margins due to higher module prices. The Odisha aggregate technical and commercial (AT&C) loss rose by 200 bps, on account of the impact of the second wave of the pandemic, according to Edelweiss.

JPMorgan

The brokerage has retained an 'overweight' call on the stock with an increased target price of Rs 155. The company beat expectations with its Q1 earnings, according to JPMorgan. The management's key focus remains on scaling up its renewables and adjacent businesses while keeping its leverage contained, the brokerage said.

JPMorgan said Tata Power is its top pick in utilities.

CLSA

The brokerage has a 'buy' call on the stock with a raised target of Rs 160. The repricing of debt and net long coal drove the company's solid Q1 performance, according to CLSA.

Macquarie

The brokerage has retained an 'underperform' call on the stock with a target price of Rs 101 citing expensive valuation. Monetisation of the renewables platform could take up to 18 months, which might delay further deleveraging in the interim, Macquarie said.