Citi cuts Tata Power stock target price

Citi has cut the target price of Tata Power to 1,290 from 1,462 rupees and maintained ‘buy’ rating on back of higher input cost at its Mundra ultra mega power project (UMPP).

Indonesia has raised the minimum sale price for coal by $35-$40 per tonne higher than the fixed price at which Tata Power was set to source 25 percent of its Mundra UMPP’s requirement.

The company is also evaluating other options like sourcing coal from alternative mines,which could be low grade,Citi said in a note.

At 12.30 p.m Tata power shares were trading at 1,043 rupees,down 3.88 percent in a weak Mumbai market which is down 0.8 percent.