Shares of Tata Power Company rose as much as two percent on Thursday after the company reported its December quarterly earnings. At 9:24 am, the stock was up 1.4 percent at Rs 237.95 on BSE.

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Tata Power reported a 73.5 percent Year-on-Year (YoY) increase in net profit at Rs 551.8 crore for the third quarter ended December 2021, on the back of strong business performance by all verticals. In the corresponding quarter last year, the company posted a net profit of Rs 318 crore. CNBC-TV18 Poll had predicted a profit of Rs 520 crore for the reporting quarter.

Total revenues for the quarter rose 43.6 percent YoY to Rs 10,913.4 crore from Rs 7,597.9 crore in the year-ago quarter.

“We are committed to focusing on key growth areas viz renewables, distribution, and new businesses comprising rooftop solar, solar pumps and EV charging. We'll focus on utilising technology to offer smart, green energy solutions and provide a world-class experience to our 12 million-plus customers," said Praveer Sinha, CEO & Managing Director, Tata Power.

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CLSA believes that MSCI addition and a retail frenzy provide an exit opportunity and added that the stock valuation is expensive at current levels. The brokerage firm has a 'sell' recommendation on the stock.

Sustained near-term high coal prices, higher execution/margin improvement at solar EPC business and expectation of sustained improvement in financial at Odisha discom make domestic brokerage firm Sharekhan confident about the company's long-term earnings growth potential.

Additionally, management's business restructuring plans to increase the share of high growth RE business would drive sustained improvement in ESG score and RE portfolio monetisation will help unlock value, Sharekhan said while maintaining its 'buy' rating on the stock.

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