Rattan Power share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Rattan Power share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned Rattan Power share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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Rattan Power Company Profile
RattanIndia Power, previously the Indiabulls Power was established in 2007 to capitalize on emerging opportunities in the Indian power sector. It develops and intends to operate and maintain power projects in India. In 2014 the name of the Company changed from Indiabulls Power Ltd to RattanIndia Power Ltd.
RattanIndia Power Limited is developing coal-based thermal power projects Amravati and Nasik in Maharashtra, at additional Amravati industrial area at village Nandgaonpeth, Amravati district, Maharashtra. The total capacity of the plant is 2,700 MW comprising of two phases each of 1,350 MW.
NASIK THERMAL POWER PROJECT – a subsidiary of RattanIndia Power Limited is being set up in a 2,500-acre Multi-product SEZ at Sinnar, Nasik district, Maharashtra. The project site is easily accessible from Nasik, Pune & Mumbai.
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Rattan Power Share Price Target 2022
Rattan Power Amravati plant continued to be available to supply at 100% plant availability. Rattan Power is also managed to secure a favorable order from the Maharashtra Electricity Regulatory Commission (MERC) on 31 December 2020, which has made the plant significantly competitive in the State Merit Order Schedule, and, as a result, Rattan Power has successfully achieved a plant load factor (PLF) of 86% at its Amravati plant in the fourth quarter for FY2021. Amravati plant would continue to be extremely competitive, resulting in higher PLF going forward and contributing to the Nation’s development by providing reliable, cost-effective, and efficient baseload supply.
Rattan Power is also undertaking a holistic and organization-wide transformation exercise to achieve excellence in performance under key areas related to operational, financial, and business, in order to have a meaningful impact on the profitability of the Company. Apart from the above, Rattan Power is also working to make the existing processes more robust and resilient to deal with the new normal.
The Company, after sustaining losses for a consecutive 9 quarters, showed profits from the second quarter of the financial year FY 2020-21, ending the year with an EBIDTA of 988.22 Crores and Profit After Tax (PAT) of 96.71 Crores. In addition to this, Rattan Power continues to strive to improve its margins on a regular basis and the Company worked with its lenders to bring about a reduction in annual interest costs from 13.5% to 12.25 % for a part of its outstanding debt, resulting in considerable savings for the Company.
This also reflects in the rating of the Company, which secured a rating of BBB- for its long term debt (with “Stable” outlook) and a rating of A3 for its short term debt. By considering all these factors. Rattan Power share price target 2022 is Rs 8.
|Rattan Power share price target 2022|
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Rattan Power Share Price Target 2023
India’s focus on electric mobility will also add significantly to the current demand. Currently, only 1% of the total vehicles sold in the country are electric, which provides a huge market opportunity for growth in the sale and adoption of electric vehicles. With the country has set its target to move to a 100% electric eco-system by 2030, it is estimated to create an additional requirement of 70 terawatt-hours of electricity.
India’s distribution sector continues to be the Achilles Heel for the growth and financial viability of the entire power sector. We too, like other generating companies, continue to be inextricably linked to the viability of the Discoms. The Government of India continues to focus on improving the efficiency of the distribution sector and has announced measures to reform the sector and promote private participation in the distribution sector and provide choices to consumers. In this regard, the Union Finance Minister, in her last budget speech, has announced a reforms-based and results-linked Revamped Distribution Sector Scheme with a five-year outlay of 3.06 Trillion, tied to financial performance.
Improvement in the health of the distribution segment augurs well for the upstream business segments like generation and transmission. The expected competition in the distribution segment would further bring in efficiency for the entire power sector.
The proposed introduction of the amendments to the Electricity Act 2003 through the Electricity Amendment Bill 2021 is also set to bring about many required key changes in the functioning of the sector. Apart from offering greater choice to consumers by delicensing of the distribution business, it is also proposed to strengthen the regulatory commissions to expedite the process of recovery of revenues, which have been otherwise locked up in long-drawn litigations. Rattan Power share price target 2023 is Rs 12.5.
|Rattan Power share price target 2023|
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Rattan Power Share Price Target 2024
The Indian economy, which was gradually on the recovery path post the impact of the first wave of Covid-19 last year, had again lost the pace of recovery due to this resurgence. However, India’s long-term growth prospects continue to be positive, with the World Bank continuing to be bullish about the growth of the Indian economy, projecting a growth of 7.5 percent in 2022-23.
Rattan Power has a fully vaccinated and healthy workforce to address any concerns arising out of a slow-down and a resultant delay in its economic recovery as the country has set a target to vaccinate its entire adult population by December 2021. Despite all odds that the country has faced in general in the recent challenging times, India’s energy sector has witnessed multifaceted growth, buoyed by policy interventions, reforms, and investments.
Various initiatives are taken by the country in the past, including the introduction of various key policies, like 100% electrification and electricity for all under the SAUBHAGYA program and improvement in the transmission connectivity across various regions, which would be the key drivers contributing to the future increase in electricity demand in India.
Growing out of the shadows of the pandemic, India’s demand for electricity continues to grow with peak demand touching an all-time high of 200.57 GW on 7 July 2021. By considering all these factors, Rattan power share price target 2024 is Rs 19.
|Rattan Power share price target 2024|
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Rattan Power Share Price Target 2025
Driven by a fast-expanding economy, growing population, fast urbanization, and industrialization, India is expected to see the largest increase in demand across any country globally over the next 20 years. India has already put in place a robust policy and institutional framework required for meeting its energy requirements and for attracting investments from across the globe in its energy sector. However, the Covid-19 crisis has further complicated the efforts to resolve these pressing problems.
The welcome steps were taken towards opening the retail oil & gas markets and allowing private investments in commercial coal mining in the previous years have been met with a muted response. In addition, the nation continues to face challenges in ensuring improvements in the financial health of the power sector due to the ailing financial health of its power distribution companies, which are still largely under the control of the Government. In spite of the Government’s best intentions to increase competition by de-licensing and opening up India’s distribution sector to wide-scale private participation, the overall sector continues to be highly regulated.
In the Power Sector, Independent Power Producers (IPPs) like Rattan Power procure coal from Coal India Limited (a government-owned company). Coal transportation is primarily through the Indian Railways (another government-owned organization) and electricity generated by the generators is supplied to Discoms (most of which are government-owned). Here, suppliers of raw material (coal), services (transportation), and the procurers of electricity are directly under Central or State Governments and in effect, act as monopolies in the respective areas.
The Government continued to focus on reforming the power sector even during the difficult times under Covid-19 and took some landmark initiatives to help overcome the challenges that the Discoms continue to face.
Some of these steps include the push for privatization of the distribution sector in States and all Union Territories, a special one-time liquidity infusion of 90,000 Crores (that was subsequently further scaled up to 1.35 lakh Crores), focus on consumer rights through the Draft Electricity (Rights of Consumers) Rules, 2020, impetus to domestic solar manufacturing through Basic Custom Duty (BCD) imposition and Performance Linked Incentives (PLI) scheme, opening up commercial mining for private players, and announcement of 3.06 trillion reforms-based and results-linked Revamped Distribution Sector Scheme.
By considering the support from the government and the opportunities that power sector companies have to grow in the future, Ratan Power share price target 2025 is Rs 28.
|Rattan Power share price target 2025|
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Rattan Power Share Price Target 2030
India is the world’s third-largest in terms of energy consumption, pushed by rising income levels, a high rate of urbanization, and continuous improvement in the standards of living. This is clearly evident from the fact that energy use has doubled over the last 20 years since 2000, with 80% of the demand still being met by coal, oil, and solid bio-mass. However, as with other key indicators like vehicle ownership, steel, and cement outputs, India’s energy use on a per-capita basis continues to be less than half of the world’s average, resulting in huge un-materialized demand and a significant market for growth.
As India gradually recovers from a Covid-driven fall in demand in 2020, it is on the cusp of re-entering an extremely dynamic and exciting period in its energy sector development. Riding on a fast urbanizing population, improving income levels and an aspiring middle-class, future demand for electricity continues to be strong, with millions of Indians set on purchasing new air-conditioners, new appliances, and vehicles.
As per the projections of the International Energy Agency (IEA), India, in order to meet the anticipated growth in electricity demand over the next twenty years, would need to add a power system the size of the European Union to what it has now. India’s ambition to move to a 100% electric mobility ecosystem by 2030 itself is expected to add an additional requirement of 70 terawatt-hours of electricity.
India’s demand for electricity, which showed a significant fall in the wake of the onset of the pandemic in 2020, with peak demand showing a reduction of 30% and 15% in April and May 2020 respectively, has surged back to new heights. Demand for electricity has shown a strong recovery since September 2020, with peak demand touching new heights, crossing the 200GW mark on 7 July 2021 and touching an all-time high of 200.57GW.
As per Central Electricity Authority (CEA) estimates, the gross energy generation target for the financial year 2021-22 is 1,356 BU from conventional sources. In addition, a total of 150 BU of energy is expected to be supplied from RES during the year. By considering all the above-mentioned factors and after extensive research, Rattan Power share price target 2030 is Rs 104.
|Rattan Power share price target 2030|
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Rattan Power Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Rattan Power share Price Target|
|Rattan Power share price target 2022||Rs 8|
|Rattan Power share price target 2023||Rs 12.5|
|Rattan Power share price target 2024||Rs 19|
|Rattan Power share price target 2025||Rs 28|
|Rattan Power share price target 2030||Rs 104|
Frequently Asked Questions
What is the future of Rattan Power share?
Driven by a fast-expanding economy, growing population, fast urbanization, and industrialization, India is expected to see the largest increase in demand across any country globally over the next 20 years. India has already put in place a robust policy and institutional framework required for meeting its energy requirements and for attracting investments from across the globe in its energy sector. This will help Rattan Power to grow its business in the future.
Is Rattan Power Debt-free?
Rattan Power is not a debt-free company. The company has a debt of around 5,000 crores, which is high and the debt-to-equity of the company is 1.01.
Rattan Power share price target 2025?
Rattan Power share price target for 2025 is Rs 28.
Rattan Power share price target?
Rattan power share price target for 2022 is Rs 8, Rattan power share price target for 2023 is Rs 12, Rattan Power share price target for 2024 is Rs 19, Rattan power share price target for 2025 is Rs 28, and Rattan power share price target for 2030 is Rs 104.