Tata Power Hits Record High, Becomes Sixth Tata Group Firm to Cross Rs 1 Lakh Crore Market Cap
Shares of Tata Power experienced a remarkable surge of 11 percent on December 7, reaching a new all-time upper without brokerage firm JM Financial upgraded the stock from ‘hold’ to ‘buy.’ The significant gains propelled the visitor into the league of Tata Group firms with a market capitalization exceeding Rs 1 lakh crore.
Closing at Rs 325.80 on the NSE, Tata Power’s stock recorded a notable proceeds of 10.8 percent on December 7, having touched an unprecedented upper of Rs 332.15 older in the day.
JM Financial not only upgraded the stock but moreover raised its price target by 40 percent to Rs 350, up from the previous target of Rs 220. The revised price target suggests a potential surge of 24 percent over the next 12 months.
In its recent report, JM Financial highlighted four key elements of Tata Power’s strategic recalibration plan. These include seizing opportunities in the group repeater renewables sector, divesting from low-value businesses, venturing into the brownfield hydro storage sector, and expanding the transmission merchantry vastitude distribution.
The brokerage firm anticipates a favorable resolution for Tata Power regarding the Mundra issue. JM Financial analysts project a 15 percent Compound Annual Growth Rate (CAGR) for revenue, a 23 percent growth in Earnings Surpassing Interest, Taxes, Depreciation, and Amortization (EBITDA), and a 32 percent increase in net profit from the financial year 2023 to 2026.
The positive outlook is grounded in the expectation of Tata Power’s earnings stuff buoyed by an expanding windfall wiring and an enhanced margin profile. Having recently secured the Bikaner-Neemrana transmission project to modernize renewable energy evacuation in India, Tata Power continues to secure new orders.
Jigar S Patel of Anand Rathi Shares & Stock Brokers noted that since March 2023, Tata Power’s stock has been on an upward trend, making higher highs and higher lows. Patel indicated that the Directional Movement Index (DMIs) stuff positively poised suggests ongoing bullish momentum. He recommended ownership in the range of Rs 294–295 with a target of Rs 310 and a stop-loss of Rs 286 on a daily tropical basis.
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#TATAPOWER at record high today. With the stellar gains, the company also became the sixth firm belonging to the Tata Group to have surpassed the Rs 1 lakh crore market cap.
Keep following @financewithsneh pic.twitter.com/vBA8K4QqG3
— CA Sneha Tibrewal (@financewithsneh) December 7, 2023
Tata Power surges to new highs, becomes the sixth Tata Group company to surpass the Rs 1 lakh crore market cap. Read @FinancialXpress to know more.
By: @dev_sethia03 https://t.co/msxlNVWaHt@roshunpovaiah @sumanasarkar @Kgaurav2806
— FEMarkets (@FEMarkets) December 8, 2023
