Edelweiss believes that Tata Power is at a cusp of a mega transformation for two reasons. One, the company is resolving its legacy problems by reducing debt and through restructuring. Two, and two, they are realigning their business model to new Environmental Societal and Governance trends which are niche and scalable.
On back of these factors, Edelweiss has maintained its ‘buy’ rating on Tata Power but has raised the target price to Rs 95 from Rs 75. The brokerage house has also raised the earnings per share (EPS) for FY21 and for FY23 by 20 percent and 30 percent respectively.
CNBC-TV18’s Nimesh Shah has more details.
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