Tata Power- EV Charging - a trap for small investors?
Tata Power share price was ruling at Rs. 138 in January 2010, and now at Rs. 113, giving a loss of 18% in 11 years on principal, making small investors disappointed on having invested on TATA name, and now looking for muddal (cost price). Now market players in collusion with Media, is seen coming with second round of trap for gullible investors, by throwing carrot, of company foraying in EV charging. To put the facts correctly, company had already installed 300 EV charging stations in 40 cities already, as also, has entered into an agreement with OMCs and Maharshatra Govt to take this process forward.
Tata Power is having an annual income of Rs. 30,000 crore, which is fully generated by selling Thermal, Renwewabls Power and its T&D. In EV also, company will be selling power, with realisation seen in line with existing power realisation (additional realisation, if any, will be return on EV Infrastruture), as EV vehicle maker will be enjoying the benefits of lower running cost. Also, difficult to assess the conrtibution from EV even 5 years down the line, to total revenue stream of the company.
Tata Power share rose to Rs. 138 in Jan 2010, when market went blindly bullish on its 4,00 MW UMPP at Mundhra, which was seen a huge drag on Financials, taking company over 2 decades back, in less than 1 decade.
So, can a small investor afford to make same mistake again?
Or, portfolio with this stock may need charging after couple of years.
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