Tata Stock Below Rs 350 Nears 1-Year High, Partners With IOCL For Ultra-Fast EV Charging Points; HOLD Or SELL?

Tata Group-backed power flagship company, Tata Power touched a nearing its 52-week high on Monday as the company announced its strategic collaboration with leading oil market company (OMC), Indian Oil for developing over 500 fast and ultra-fast electric vehicle charging points. On the contrary, Indian Oil shares dipped.

On BSE, Tata Power's share price settled at Rs 333.50 apiece, up by 3.11% with a market cap of over Rs 1.06 lakh crore. The stock had touched an intraday high of Rs 335.25 apiece during trading hours which was closest to the 52-week high of Rs 335.80 apiece.

Tata Power has become the sixth company in the Tata Group umbrella to cross the Rs 1 lakh crore m-cap mark.

As for Indian Oil, the stock ended at Rs 117.50 apiece down by 1.09% on BSE after touching an intraday high of Rs 121 apiece -- which was near its 52-week high of Rs 122.50 apiece. The company's m-cap is nearly Rs 1.66 lakh crore.

Tata Power-backed Tata Power EV Charging Solutions who is one of the leading EV Charging solutions providers, signed a memorandum of understanding (MoU) with Indian Oil Corporation Limited (IOCL) for rolling out fast and ultra-fast electric vehicle (EV) charging points across India.

The deal will see Tata Power install 500+ EV charging points across multiple IOCL retail outlets.

Virendra Goyal, Head -Business Development-EV Charging, Tata Power said, "Our partnership with IOCL is a strategic move towards establishing a robust EV charging network in the country. Leveraging IOCL's extensive presence, Tata Power will set up fast and superfast charging points in multiple regions, contributing to accessibility and inclusivity for a sustainable electric mobility future."

As per the filing, the EV charging points will be installed in major cities like Mumbai, Delhi, Kolkata, Bengaluru, Ahmedabad, Pune, and Kochi, as well as across major highways such as the Mumbai-Pune Expressway, Salem-Kochi Highway, Guntur-Chennai Highway and the Golden Quadrilateral.

The partnership focuses on building a reliable and expansive intercity charging network which will help alleviate range anxiety for EV owners travelling between cities.

Meanwhile, Saumitra Shrivastava, Executive Director (Retail-N&E) expressed the Corporation's commitment to adapting to the rising trend of electric vehicle penetration. "IOCL envisages to provide 10,000 EV Charging Stations by 2024 transforming retail network to complete energy solutions outlets. With more than 6,000 EV charging stations at present, the company plans to keep expanding its reach. Our strategic partnership with Tata Power is poised to play a pivotal role in responding to this transformative shift. We at IOCL are geared up to overcome challenges and capitalize on opportunities in this area, ensuring a seamless transition towards a more sustainable and eco-friendly mobility paradigm."

Further, Tata Power said it is committed to enhancing the EV user experience through tech integration and innovative solutions. EV users will have a dual advantage of a seamless EV charging experience through the 'Tata Power EZ Charge app and 'The IndianOil e-Charge' mobile app that can be used to locate and book the chargers at their convenience.

As per the Trendlyne data, the consensus recommendation from 18 analysts for Tata Power Company is HOLD. It took note that Tata Power's revenue was higher than the average estimate 3 times in past 3 years. Also, the company's EPS is expected to grow by 1.9% in FY24.

Earlier, brokerage JM Financial recommended buying Tata Power for a target price of Rs 350.

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