With all the blue-chip giants riding the market why am I endorsing Tata Power? Especially when it dropped 50% during the Covid-19 lock down period. What makes it a safe bet to the long-term investor? And why do I consider it a multibagger share or the next Tesla?
Here is why:
Its pedigree is impeccable, being part of the prestigious Tata group who are one of the largest and most trusted groups in India.
Tata power operates in 35 locations in India alone, besides Singapore, Indonesia, Bhutan, South Africa and most of the Gulf countries. They are investing a lot in solar power and most importantly, the promoters Tata group are buying back shares. When a promoter buys back a share it’s a sign something big is happening or going to happen.
This company is going all out to go green. They are planting saplings on the sides of the roads of major big metropolitan cities according to certain reports on the net.
Tata Power is also setting up 1 lakh solar charging stations in collaboration with Tata Motors its sister brand by 2021.
Why is the solar sector so important?
According to an article in Economic Times, the electric vehicle charging market will be around a 50000-crore opportunity in India by 2025.
Then in 2017, the transport minister of india Nitin Gadkari said transport industry will completely move into electric vehicles by 2030. This government is heavily investing in solar or renewable energy as is this company.
Tata Power powers the city of Mumbai and they recently won the rights to power 5 circles of Odisha state.
Petrol and diesel costs are close to Rs. 100 each per liter. It will definitely go up in the future and with the emphasis on pollution control taking priority on every nation’s list, everyone will turn to electric vehicles in the near future.
Need more convincing? Tesla Inc, owner and operator of the tesla car brand was trading around 500 usd at the beginning of the year. Now when I am writing this blog it has crossed above 1500 usd per share. It will rocket up in the future. One of the few reasons for the prices went up are its super-fast charging stations for its vehicles.
Tata Power is providing super-fast charging stations for their own lineup of Tata Motor cars and also for other brands.
This month they have signed up with Morris Garage car maker to supply super-fast chargers.
In September 2018, they signed a MOU with Hindustan petroleum to make charging stations in india.
My recommendation is for you to get 500 to 2500 shares of these stocks/shares below 75 INR and wait and watch it grow. Even if it doesn’t grow much, dividends are ensured.
My suggestion is to hold on to this share and not sell it, because electric vehicles are the future and unless something goes horribly wrong with this company you are on a winning streak.
I am not a sebi registered person, this is my personal opinion. Invest at your own risk.