Tata Power witnessed its shares hitting a record high for the second consecutive session, reaching an all-time high of Rs 322.30 ($3.87) on Thursday.
According to a Business Today report, this surge, amid a mild correction in the broader market, marked a notable uptrend for Tata Power. The company’s stock has been on an upward trajectory, gaining 45.47 per cent in the last six months and an astonishing 50 per cent in the current year.
This momentum led to a record market capitalisation Rs 1.01 lakh crore (approximately $11 billion), reflecting investor confidence in Tata Power’s strategic moves.
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Analyst insights and projections
Business Today quoted Mandar Bhojane, Equity Research Analyst at Choice Broking, as saying that Tata Power’s all-time high level of Rs 322 indicates a robust bullish momentum in the stock.
Supporting the sentiment, Aditya Gaggar, Director of Progressive Shares, added that the year-long consolidation may come to an end.
Strategic recalibration and market cap milestone
The 11 per cent surge in Tata Power’s shares comes close on heels of JM Financial upgrading Tata Power’s stock to a ‘buy’ rating from ‘hold’.
JM Financial has also increased the price target on the stock by 40 per cent to Rs 350 ($4.20), envisioning a potential rally of 24 per cent over the next 12 months.
It further highlighted the key elements of Tata Power’s strategic plan: capitalising on group captive renewables, divesting from low-value businesses, entering the brownfield hydro storage sector, and extending the transmission business beyond distribution.
Positive resolutions and technical outlook
JM Financial projects a 15 per cent Compound Annual Growth Rate (CAGR) for revenue, a 23 per cent growth in EBITDA, and a 32 per cent increase in net profit from FY 2023 to 2026.
Tata Power’s consistent acquisition of new orders, including the Bikaner-Neemrana transmission project, positions it for further growth. Moneycontrol quoted Jigar S Patel of Anand Rathi Shares & Stock Brokers as saying that technical analysis supports the bullish momentum.
He explained that since March 2023, Tata Power stock has been making higher highs and higher lows, indicating a strong bull trend.
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Source: Thanks WIONews.com