Shares of Tata Power Co. rose 3.13%, as the company has garnered positive sentiment from leading brokerages. Both Motilal Oswal and Nuvama expressed bullish outlook on the company’s future performance. The brokerages have highlighted Tata Power’s strong financial results in the third quarter and growth potential, particularly in the renewable energy sector.
Motilal Oswal On Tata Power
Motilal Oswal has reiterated its ‘buy’ rating on Tata Power, setting a target price of Rs 490, which implies a 35% upside from the current market price of Rs 362.
Tata Power’s Q3 FY25 Ebitda was up 38% year-on-year, but 4% below Motilal Oswal’s estimate. The rise in Ebitda was driven by robust growth in the standalone business and increased contributions from the renewables segment.
The company’s adjusted PAT for Q3 FY25 stood 18% above the brokerage’s estimate, boosted by higher other income and a lower-than-expected tax rate.
Tata Power commissioned 865 MW of renewable energy capacity in the first nine months of fiscal 2025, with significant contributions from its cell and module business. The company is also exploring new opportunities in privatisation of distribution companies and in the nuclear space.
Despite the strong performance, Motilal Oswal has trimmed its FY26-27 EPS estimates by 7%, due to a slower-than-expected pace of renewable energy project commissioning.
Nuvama On Tata Power
Nuvama is also positive on Tata Power. The company’s solar utility scale EPC and group captive order book stood strong at the end of Q3 FY25.
Tata Power’s clean and green operational capacity reached 6.7 GW, with an additional 10.1 GW under construction. The company also entered into a partnership with Bhutan’s Druk Green Power Corp. to develop 5,100 MW of clean energy projects in Bhutan.
Tata Power Share Price
Shares of Tata Power rose as much as 3.13% to Rs 373.40 apiece. They pared gains to trade 1.42% higher at Rs 362.05 apiece, as of 09:25 a.m. This compares to a flat NSE Nifty 50.
The stock has fallen 8.95% in the last 12 months. Total traded volume so far in the day stood at 0.57 times its 30-day average. The relative strength index was at 32.
Out of 23 analysts tracking the company, 14 maintain a ‘buy’ rating, one recommends a ‘hold’ and eight suggest ‘sell’, according to Bloomberg data. The average 12-month analysts’ consensus price target implies an upside of 22.3%.
. Read more on Markets by NDTV Profit.Motilal Oswal has reiterated its ‘buy’ rating on Tata Power, setting a target price of Rs 490, which implies a 35% upside. Read MoreMarkets, Business, Notifications
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