This Tata Group Multibagger Stock Has Seen The Highest Recovery From 52-week Low

Tata Group shares much like the Group are in limelight, likewise here is a stock from the pack that needs attention as it has seen the highest recovery from 52-week low and it is indeed sited as on of the biggest opportunities for the scrip.

If you could not figure out, we here are referring to the stock of Tata Power.

About the company

Tata Power is a large cap entity in the power space. The company formerly a part of the three entities jointly known as Tata Electric Companies, is a pioneer in technology adoption, with many firsts to its credit, supporting the country's energy independence. The company is rapidly energizing the complete power value chain through its efforts in segments including:

Renewable Energy

Conventional Energy

Transmission

Distribution

EV charge infrastructure

manufacturing

EPC large projects

Stock price trajectory

The company's scrip has hit an all time low of 4.27, while its 52-week low is at Rs. 107 and it has swiftly recovered from that price to currently trade at Rs. 231.6. This said the stock's 52-week high is Rs. 298.05. The stock is a multibagger with 1-year return at 114%

Fundamentals

The stock is currently commanding a higher PE of 42.51 and RoE is also lower in comparison to its peers including Power Grid and Adani Power. The debt to equity is also on the higher side.

Nevertheless on the positive front, the company is registering growth in TTM EPS. Also, it has registered good profitability growth in the last 3 years. Also it has maintained an effective average operating margins of 27.48% in the last 5 years. The company has a good cash flow management.

Financials

The company's financials are improving with net income registering a consistent increase to Rs. 1741.46 crore in the Fy22 period. This though in Fy2019 was at Rs. 2356 crore. Free cash flow at the firm in Fy22 has been at Rs. 5122.22 crore.

News around the stock

The company has entered into a contract with realty major Kotle Patil for installing EV charging stations across its projects in projects in Pune, Mumbai, and Bengaluru, providing comprehensive charging solutions to EV owners.SEL Manufacturing Company has very low trading volumes of 500 to 600 and has low liquidity, therefore its circuit filter is low at 2%.

SEL Manufacturing Company reported a net loss of ₹ 24.20 crores in the quarter ended March 2022 as against a net profit of ₹ 2622.22 crores during the previous quarter ended March 2021. Its sales rose 265.48% to ₹115.82 crores in the quarter ended March 2022 as against ₹ 31.69 crores during the previous quarter ended March 2021.

Circuit filters are used to regulate the price fluctuation on a day and they act as market curbs on days of euphoric or panic selling. In addition, they curb price manipulation by stock operators to an extent.