Understanding Trading - Picking Small, Mid And Large Cap Stocks With Analysis

Pick 3 stocks to buy and show your analysis on why you chose them.

Tata Power (Large cap)

• One of the biggest integrated power companies in India, Tata Power has been ranked as the country's top solar rooftop EPC company for eight years running, according to Bridge to India.
• The company's revenue for the last financial year was 55,509cr, up 10% from the previous year. Revenue for the last three quarters was 45602cr. EBITDA for the last quarter(Q3FY23) was 3250cr, up 15% from the previous year and 5% from the previous quarter. Overall, revenue growth trend shows a promising powerful trajectory.
• India ranks fourth in global energy consumption but is projected to surpass all other nations in the coming decades. By 2030, the government expects to reach 450 GW of installed renewable energy capacity, with solar energy constituting about 60% of this total. This shows promise for the large solar sector companies.
• Tata Power's market capitalization has surpassed one lakh crore, CRISIL has raised its rating from AA/Stable to AA/Positive, and Tata and Indian Oil have signed an MOU to jointly deploy more than 500 EV charging stations around India.
• Profits of the company have grown from 2623 Cr last year to 3810 Cr this year. Forecasts suggest that the price is estimated to reach Rs 489.65 by the end of 2024. The stock has been beating price estimates for the past few months and is expected to behave in a positive way in the coming months, proving to be a good lookout for investors.

KPI green Energy (Mid Cap)

• Leading firm in Gujarat's independent power producer (IPP) market, the company offers solar electricity to captive power producers (CPP) as well as engineering, procurement, and construction (EPC) services.
• Last quarter's(Q3FY23) net profit of the company was 51 Cr, up 45% from the previous quarter and 50% year over year. Revenue for the company was 330 Cr.
• The company has an excellent return on equity (ROE), with a three-year ROE of 38.8% which is excellent in comparison with its peers.
• Positive indicators for the company are the reduction of the working capital cycle from 173 days to 76.1 days and the company's debtor day from 107 to 83.2 days.
• A negative indicator of the company is that 45.5% of the promoter holdings are pledged out of the total 53.08%.
• From recent movements, the stock has been analysed to be having consistent performance, quality management and strong investor support. If it continues the current growth trend, investors can expect the stock to outperform their investments by the end of the year.

Oriana power (Small cap)

• The company provides low-carbon energy solutions that include off-site solar farms and on-site solar project installations, such as rooftop and ground-mounted systems.
• The company’s sales in Q2FY23 were 66 Cr and have doubled as compared to last year (34 Cr). These figures show that the company is expanding at a rapid rate. The new profit has also taken a huge jump of 57% as compared to last year.
• Cash flow shows that its profits are being reinvested in the business, the fact that debtor days have decreased from 72 to 54 days suggests that the cash conversion cycle is going well.
• The shareholding pattern reveals that FIIs own 2.75% of the company, while DIIs control 3.95%.
• Oriana Power Ltd declared that it has secured three orders for projects totalling Rs 17.49 crore, or 3.93 MW. The three orders are for various projects spread over the states of Rajasthan, Karnataka, and Haryana in India.
• Rising net cash flow and cash from operating activity indicate a stable future growth for the stock. The stock has the highest recovery from a 52 week low in the segment which indicates promising growth in the future as well.