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https://www.canadagoosecanadaoutlet.com Expect improvement in fundamentals to further correct the under recovery which has steadily declined from Rs 1,400 crore in FY18 to Rs 800 crore in FY 19.”NTPC can focus on improving supply from its captive coal mines to 5mn tonne annually and likely higher imports of 3mn tonne can lower under recovery significantly in FY20E, resulting in higher earnings by 5 percent in FY20E.”Capacity additions of 15GW, which is under construction and is likely to be commissioned by FY22, along with an increased focus on captive mining and fuel security will further drive growth, says Elara.Tata Power Target: Rs 79 Return: 38 percentThe brokerage expects a potential resolution at Mundra Coastal Gujarat Power (CGPL) to be a key trigger for the stock.”Tata Power’s stock performance has been lacklustre at 40 percent over the past three years on account of Mundra tariff issue and volatile coal prices. A sizeable fall in prices of imported coal would help the company reduce losses at Mundra, although at cost of declining profitability from Indonesia coal mines,” says Elara.The company has also been dipping its toes in the renewable energy (RE) space. It recently acquired assets of Welspun Renewable Energy, which increased its capacity from 1.2GW on March 31, 2017 to 3 GW on March 31, 2019.The brokerage expects the increased capacity to contribute 35 percent to overall EBITDA in the medium term.Also, the company’s focus on deleveraging via stake sale in Tata Projects, global power assets and the sale of defence business shall also drive stock prices, says Elara..

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