Tata Power recovers on bargain hunting

Tata Power Company rose 1.89% to Rs 81.05 at 11:34 IST on BSE, with the stock recovering on bargain hunting after recent steep slide triggered by media reports that the state government in Maharashtra is planning to cut power tariffs.

Meanwhile, the S&P BSE Sensex was up 75.91 points or 0.37% at 20,769.15.

On BSE, so far 2.78 lakh shares were traded in the counter as against average daily volume of 5.24 lakh shares in the past one quarter.

The stock hit a high of Rs 81.30 and a low of Rs 79.50 so far during the day. The stock had hit a 52-week high of Rs 110.95 on 9 January 2013. The stock had hit a 52-week low of Rs 68.25 on 6 August 2013.

The stock had underperformed the market over the past one month till 7 January 2014, declining 9.7% compared with the Sensex's 1.44% fall. The scrip had also underperformed the market in past one quarter, declining 2.69% as against Sensex's 4.01% rise.

The large-cap company has equity capital of Rs 237.31 crore. Face value per share is Re 1.

Shares of Tata Power had declined 12.91% in five trading sessions to settle at Rs 79.55 on Tuesday, 7 January 2014, from a recent high of Rs 91.35 on 31 December 2013.

According to reports, the cut in power tariffs in Maharashtra would be only for farmers, domestic consumers and small businesses consuming less than a set amount of electricity.

A cut in power tariff in Maharashtra would come after the ruling Aam Aadmi Party's push in Delhi to cut power tariff in the state.

Tata Power Company reported a consolidated net profit of Rs 74.97 crore in Q2 September 2013 as against net loss of Rs 83.80 crore in Q2 September 2012. Net sales rose 14% to Rs 8717.11 crore in Q2 September 2013 over Q2 September 2012.

Tata Power is India's largest integrated power company with a significant international presence.

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