Visit http://indiaer.blogspot.com/ for complete details Tata Power: (TTPW.BO; Neutral; 12-month TP: Rs1450, potential upside 2%)
We retain Neutral on Tata Power with our revised 12-m SOTP-based TP of Rs1,450
(earlier Rs1410) implying potential upside of 2% as we roll forward our target price
to FY12E.
Though Tata Power remains fairly insulated to the competitive environment, we
believe the valuations already reflect the timely commissioning of its upcoming
power projects. We believe coal prices and progress on projects under
development will be the key parameters to watch for.
We will turn constructive on the stock on having more visibility on funding of
projects under development. Key upside risk is development of projects ahead of
our estimated timelines and key downside risk is decline in coal prices.
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