TATA-group power company invests Rs 120 crore for 40% stake in 600 MW Khorlochhu Hydro Power project in Bhutan
DSIJ Intelligence-1 / 25 Jul 2025/ Categories: Multibaggers, Trending
The stock gave multibagger returns of 720 per cent in 5 years with PE of 34x, an ROE of 11 per cent and an ROCE of 11 per cent.
Tata Power Company Ltd. has announced a significant step in its strategic investment in Khorlochhu Hydro Power Limited (KHPL), a company focused on developing a 600 MW hydropower project in Bhutan. Following intimations in August and October 2024, Tata Power has now completed the first tranche of its proposed acquisition of a 40% equity stake in KHPL. This initial investment amounts to Rs 120 crore, representing a subscription to 1,20,00,000 equity shares of Rs 100 each. The total planned investment for this acquisition is approximately Rs 830 crore, with the remaining tranches to be made over the next five years.
This acquisition aligns with Tata Power's commitment to accelerating its clean and green energy transition. While the acquisition itself does not fall under related party transactions, KHPL will become an associate company and thus a related party to Tata Power post-acquisition. KHPL was incorporated on June 12, 2015, and has a net worth of Nu. 6,080 million (Rs 608 crore) as of December 31, 2024, with no turnover in the last three years as it is currently in the project development phase. This strategic investment in the power sector of Bhutan underscores Tata Power's dedication to expanding its renewable energy portfolio.
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About the Company
Tata Power Company Ltd, a leading integrated power company under India's largest conglomerate Tata Group, boasts a diverse portfolio of 14,707 MW spanning the entire power spectrum. This includes the generation of both renewable and conventional energy, along with transmission, distribution, trading, storage solutions and even solar cell and module manufacturing. As champions for clean energy, they've committed to achieving carbon neutrality before 2045. Beyond generation, Tata Power has established India's most comprehensive clean energy platform, offering rooftop solar solutions, microgrids, storage solutions, EV charging stations and home automation systems.
According to Quarterly Results, the net sales increased by 7 per cent to Rs 17,238 crore and net profit increased by 25 per cent to Rs 1,306 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 5 per cent to Rs 64,502 crore and net profit increased by 12 per cent to Rs 4,775 crore in FY25 compared to FY25.
The company has a market cap of over Rs 1.20 lakh crore and has delivered good profit growth of 50 per cent CAGR over the last 5 years. The stock gave multibagger returns of 720 per cent in 5 years with PE of 34x, an ROE of 11 per cent and an ROCE of 11 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.