Tata Power lights up

Tata Power’s two-week average volume stood at 3.33 lakh shares traded but today, only in the morning session since opening bell, over 24 lakh shares have changed hands already. The stock is currently the top gainer on the BSE, up 6.5% at Rs.86.70. Its 52-week high is at Rs.91.25.

The reason for this new found love for Tata Power is that CARE, the rating agency reaffirmed its 'CARE AA STABLE' rating on company's long-term debt instruments. Given the current growing appetite of FIIs and also DIIs for debt, this stable rating immediately puts its debt in a more favorable basket.

Tata Power had reported a very good performance for Q1FY18, with its consolidated net profit more than doubling, going up over 125% (YoY) at Rs.164 crore on a 3% increased in revenue at Rs.7000 crore.

The numbers included Rs.57 crore profit from Welspun business while total profit at the renewable unit saw a five-fold jump.