Tata Power stock target price cut: Sachs

Goldman Sachs on Friday said it had cut its target price for Indian utility Tata Power stock to 1,436 rupees from 1,477 rupees on higher fuel costs and pending decision of the Indonesian government on coal prices.

If Indonesia does not grant an exemption,Tata Power would likely have to pay about $30-$35 a tonne more for 2.6 million tonnes of coal that it could receive from Bumi Resources under a fixed-price contract,the Wall Street bank said.

Tata Power posted a 5.7 percent rise in net profit for the year-ended March 31 to 20.88 billion rupees.