Goldman Sachs cuts Tata Power target price

Goldman Sachs on Friday said it had cut its target price for Indian utility Tata Power to Rs1,436 from Rs1,477 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% rise in net profit for the year-ended March 31 to Rs20.88 billion.