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 8216;buy8217; 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 UMPP8217;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.