TATA-Group Multibagger Power Company Reports Stellar Performance: Q4FY25 PAT Grows 25 Per Cent (YoY) & Announces 225 Per Cent Dividend
The stock gave multibagger returns of 1,185 per cent in 5 years with PE of 31x, an ROE of 12 per cent and an ROCE of 11 per cent.
Tata Power, a leading integrated power company under India's largest conglomerate Tata Group, boasts a diverse portfolio of 14,707 MW spanning the entire power spectrum. This includes the generation of both renewable and conventional energy, along with transmission, distribution, trading, storage solutions and even solar cell and module manufacturing. As champions for clean energy, they've committed to achieving carbon neutrality before 2045. Beyond generation, Tata Power has established India's most comprehensive clean energy platform, offering rooftop solar solutions, microgrids, storage solutions, EV charging stations and home automation systems.
According to Quarterly Results, the net sales increased by 7 per cent to Rs 17,238 crore and net profit increased by 25 per cent to Rs 1,306 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 5 per cent to Rs 64,502 crore and net profit increased by 12 per cent to Rs 4,775 crore in FY25 compared to FY25. The recommended final dividend of Rs 2.25 per share is subject to the approval of the members at the company's 106th Annual General Meeting scheduled for Friday, July 4, 2025 with a record date of Friday, June 20, 2025.
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In FY25, Tata Power significantly expanded its renewable energy capacity, commissioning over 2.5 GW and developing nearly 3 GW more, while securing crucial grid connectivity and land; the company maintained optimal generation across its plants, including the vital Mundra plant, to meet FY26 peak demand and advanced key hydro projects in India and Bhutan. Tata Power supplied 64.7 billion units to the grid and its Discoms distributed 47 billion units, supported by a growing 10.9 GW renewable portfolio, leadership in rooftop solar with 3 GW installed, strategic MoUs and partnerships for clean energy and storage, a substantial solar module order, progress in smart meters and EV charging, strong performance from its JV, and initiatives in energy literacy.
The company has a market cap of over Rs 1.20 lakh crore and has delivered good profit growth of 50 per cent CAGR over the last 5 years. The stock gave multibagger returns of 1,185 per cent in 5 years with PE of 31x, an ROE of 12 per cent and an ROCE of 11 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.