Reasons behind the rally of Tata Power in share market in recent time

Tata power company which was previously known as tata hydroelectric power supply, changed their business model in last year.  After that not only the company come back in growth track but also their share price went up to 220 rupees from 60 rupees in just one year.

High price of every tata stocks

This is not only the phenomenon of this particular company of Tata. Every other listed Tata company`s share prise at least 70 -80 percent in just one year. Now the question arises, what happened to tata that their share price is showing such high price. At last we will conclude that this boom will continue or only some tata stocks will stand out the market.

New Chairman changes the fate

There is also a master plan going on by the present chairman of tata sons group N. Chandrashekaran. We will discuss this in details in this article.

This story started when after finishing his masters, N. Chandrashekaran joined TCS. In 2009, he became the CEO of TCS. Under his lead, the revenue soars up to 300 percent in few years. Then he finally joined as a CEO of Tata sons. As we all know after resigning of Ratan Tata, many tata companies started to struggle to get market share and profit.

After joining of N. chandrashekaran, things started to change. He planned some master plan for the companies. Only after that the 17 listed companies of tata sons started to doing well.

Ultimate Opportunist

Tata groups have total 17 listed and many other unlisted companies. In his masterplan he thought to vertical integration of every company and make an ecosystem with those companies. Through this ecosystem these various tata companies stay under a roof. 

Today we will discuss one of the eco system of tata groups.

Electric Vehicle ecosystem

If you think the tata motors will get the highest benefit of the EV ecosystem, then you are wrong. It will be the tata powers which will the highest profit from the ecosystem. When tata motors will get profit one time for selling but through the charging point system of tata power, this company will generate revenue for years.

Tata power already started to establish their charging point in various metropolitan cities. Later they will establish same in lower tier cities. It will be around 1 lakh charging station very quickly. The one advantage of this company is that when tesla and other ev companies will enter India, Tata motors will feel pressure but this tata power will generate profit from every electric vehicles selling from any company.

Profit from other sources

Not only EV making companies, govt entities are also very optimistic about the electric vehicles. In an report it can be seen that govt want to increase the electric vehicles up to 70 percent in 10 years. In few years no doubt, you will see a lot of electric vehicles in form of bus, car and other vehicles. To get benefit from this Tata power tied up with Hindustan Petroleum by which in petrol pump of HP, Tata power will install electric charging point.  

So now you can understand why this company generate a huge profit and their stock prices is in bull mood. It is expected that this company will do good in future too.

Leave a Comment