Tata Power Company Share Overview: If you’re in search of a promising stock investment, considering the shares of Tata Power Company Limited could be a wise move. Various brokerage firms are optimistic about the prospects of this stock. Recently, the company’s shares experienced a notable increase of approximately two percent, closing at Rs 485.10 on the BSE. This surge has pushed the market capitalization of Tata Power to Rs 1.55 lakh crore. For context, the stock’s 52-week high stands at Rs 494.85, while the 52-week low is Rs 230.75, showcasing a substantial growth margin.
Target Price for Tata Power
According to brokerage firm Sharekhan, there is a favorable outlook for Tata Power shares. Their research report, released on September 26, 2024, recommends a “Buy” rating for the stock, with a target price set at Rs 540. This projection indicates a potential upside of about 11 percent from the current share price, making it an attractive prospect for investors seeking growth opportunities.
Brokerage Insights on Tata Power
In their assessment, Sharekhan highlighted the robust renewable energy capacity of Tata Power, currently at 10.5GW, with 5.7GW of projects in various phases of implementation. The operational capacity has reached 4.8GW, comprised of 3.8GW from solar energy and 1GW from wind energy. The company aims to add 5.7GW of renewable energy capacity over the next three years, which would significantly enhance its market positioning and sustainability initiatives.
Furthermore, the brokerage noted, “The management sees a tremendous opportunity from government-backed rooftop solar projects, with plans for installations at 1 crore homes in the next 3-4 years.” A major development includes the upcoming fully operational 4.3GW solar cell and module plant, expected by Q2 FY25. This facility will leverage the growing rooftop solar market, positioning Tata Power as a leader in this segment.
Recent Performance of Tata Power Shares
Tata Power’s share performance has shown promising trends. The company’s shares have rallied by approximately 13 percent over the last month and have yielded an impressive 19 percent return over the past six months. However, it’s important to note that the shares have seen a decline of 47 percent year-to-date. On a positive note, the stock has delivered a robust return of 85 percent over the last year and a staggering 681 percent over the past five years, rewarding long-term investors significantly.
Investment Considerations
Investing in Tata Power shares could be a beneficial strategy for those looking to partake in the renewable energy boom. As the company expands its capacity and capitalizes on favorable government policies supporting green energy, there is considerable potential for appreciation in share value.
(Disclaimer: The views expressed in this article are solely those of the expert or brokerage firm mentioned. Moneycontrol and its management bear no responsibility for any investment decision made based on this information. It’s advisable to consult a certified financial expert before making investment choices.)
