Citi slashes Tata Power stock rating

Citigroup has downgraded Ratan Tata-led Tata Power stock to 8216;neutral8217; from 8216;buy8217; and cut target price to Rs 102 from Rs 127.70 citing lower operating income and higher debt in parent,losses in Mundra ultra mega power project UMPP,lesser coal availability and de-rating in telecom investments.

After lending 63 percent of project cost,lenders are not comfortable lending the remaining 12 percent given cash flows of Mundra UMPP may not be enough to support the same,said Citi in a note on Tuesday.

At 11:28 a.m.,shares of Tata power were down 0.59 percent at Rs 93.35.

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