Tata Power is one of the leading players in power generation and the distribution sector. The company has given more than 100% return in the last 1 year (from March 2023). If you also missed the rally of the power sector then the post Tata Power share price target for 2024, 2025, and 2026 may help you to get more opportunities.
As of 21 August 2024, the Tata Power stock is trading approx 10% – 11% down at Rs. 423 from its all-time high. As per technical analysis most probably the stock will be reversed i.e. start going up near its all-time high soon. Let’s analyze the stock for short-term to long-term investments.
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About Tata Power
Tata Power i.e. Tata Power Company Ltd is a part of the Tata group. The company was founded in 1911. The company is engaged in the business of power generation and distribution. The current managing director is Dr. Praveen Sinha.
Tata Power is engaged in many businesses of the power sector which includes renewable energy generation, EV charging infrastructure, manufacturing various electric equipment, and many more-
1. Renewable Energy Generation
In renewable energy generation, Tata Power is one of the leading players in India. Tata Power harnesses renewable energy through wind and solar sources.
- Wind Energy: Tata Power installed the 1034MW wind power generation plans in the 7 states of India.
- Solar Energy: To generate renewable energy from solar Tata Power has installed 11.5GWp of ground-mounted solar power plants, 1.7 GW of rooftop solar systems, and more than 1Lakh solar water pumps.
2. Conventional Power Generation
In Conventional power generation, Tata Power generates electricity from three methods i.e. Hydra, Thermal, and Waste. For each power generation method, there are various plants at different locations.
Hydropower plants and their capacity
- Bhira, Maharashtra – 300 MW
- Khopoli, Maharashtra – 72 MW
- Bhivpuri, Maharashtra – 75 MW
Thermal power plants and their capacity
- Maithon – 1050 MW
- Jojobera – 427.5 MW
- Prayagraj – 1980 MW
- IEL Jamshedpur – 120 MW
- Mundra, Gujrat – 4150 MW
- Trombay, Mumbai – 930 MW
Power generation plants through waste and their capacity
- Haldia – 120 MW
- Kalinganagar – 202.5 MW
- IEL Jamshedpur – 120 MW
3. Tata Power’s Transmission & Distribution Business
Tata Power Company Ltd transmits electricity in India and within international borders. Tata Power categories the business into various categories like
- Mumbai Transmission Business
- Powerlinks Transmission Limited
- NRSS XXXVI Transmission Limited
- South East U.P. Power Transmission Company Limited
Tata Power is also involved in the power distribution business that supplies electricity to more than 12 million customers. You can read about the transmission & distribution business in brief on Tata Power Company Ltd’s official website where all the information is shared in detail under the business, need, capacity, etc.
4. Value Added Services
Tata Power provides many value-added servers to its customers related to power or electricity. Some value-added services are as follows-
- Managed Services
- System Integration
- Integrated Utility Services
- Capacity Building Services
- Energy Management Solutions
- Management Consultancy & Technology Advisory Services
You can read about these services on Tata Power’s official website.
5. Power Trading
Tata Power is also engaged in the business of Power Trading i.e. buying and selling power between participants.
6. Next Gen Power Solutions
Next-gen power solutions mean advancing the power generation method with new technologies and innovations. Tata Power’s net gen power solutions involve various innovative technologies like-
- Tata Power Solarroof
- Tata Power EZ Home
- Tata Power EZ Charge
- Tata Power Smart Energy Management
Tata Power’s Scrip Info
| NSE | TATAPOWER |
| BSE | 500400 |
| ISIN | INE245A01021 |
| SECTOR | Power Generation & Distribution |
Company Analysis
Below you’ll find Tata Power Company Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.
Note: The shared information is not enough for a complete analysis of any company or stock. Kindly cross-check this information with any screener or broker.
Note: All the values are in (₹) Rupees Crore.
| Quarter | Net Profit & Loss |
|---|---|
| Jun 2023 | ₹1,141 |
| Sep 2023 | ₹1,017 |
| Dec 2023 | ₹1,076 |
| Mar 2024 | ₹1,046 |
| Jun 2024 | ₹1,189 |
| Year | Net Profit & Loss |
|---|---|
| Mar 2020 | ₹1,316 |
| Mar 2021 | ₹1,439 |
| Mar 2022 | ₹2,156 |
| Mar 2023 | ₹3,810 |
| Mar 2024 | ₹4,280 |
Note: It is the company’s financial performance data, typically released every three months (quarterly) or once a year (annually).
| Market Cap | ₹1,34,907Cr | ROE | 11.42% |
| P/E Ratio (TTM) | 36.52 | EPS (TTM) | 11.56 |
| P/B Ratio | 4.17 | Div. Yield | 0.47% |
| Industry PE | 26.73 | Book Value | 101.26 |
| Debt to Equity | 1.66 | Face Value | 1 |
| Held By | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 |
|---|---|---|---|---|
| FIIs | 10.00% | 9.85% | 9.44% | 9.50% |
| DIIs | 15.68% | 16.11% | 15.47% | 15.49% |
| Public | 27.15% | 26.87% | 27.91% | 27.81% |
| Promoters | 46.86% | 46.86% | 46.86% | 46.86% |
| Other Holders | 0.32% | 0.32% | 0.33% | 0.33% |
Key Insights
- No promoters pledge their holdings.
- The profit margins of Tata Power are not stable.
- As per the RSI indicator, the stock is looking bearish.
- Tata Power Company Ltd is making profits continually.
- Tata Power’s debt is increasing but low debt on the company.
- In the last 5 years, the annual net profit has grown by more than 300%.
- There have been no major improvements in Tata Power’s quarterly earnings over the last few quarters.
Quarterly Results – June 2024
In the June 2024 quarter, there is no major buying or selling in the Tata Power Company Ltd stock from FIIs and DIIs.
In the quarter, the net profit of Tata Power Company Ltd was Rs. 1,189 which is an all-time high as compared to its previous quarters. But the profit before tax is not all-time high.
In the quarter, the company made a sales of 17,294 which is a time high in the quarter. Quarterly, the sales of the company are increasing over time.
Tata Power Share Price Target
Tata Power Company Ltd is involved in various power generation and distribution businesses renewable energy, power trading, power distribution, next-gen power solutions, and many more services. This business makes Tata Power one of the major leading players in the power sector.
For investment in the power sector, Tata Power is one of the best stocks and you can expect a good Tata Power share price target in 2024, 2025, and 2026 but the target also relies on various things like company financials, sector conditions, company fundamentals, and more.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2024 | ₹480 | ₹500 |
| 2025 | ₹600 | ₹650 |
| 2026 | ₹800 | ₹950 |
Disclaimer: We are not SEBI registered, this post is only for educational purposes. We give the stock price targets based on analysts’ research, news, price action, etc. Please do research or talk to your financial advisor before making any decision.
Tata Power Share Price Target 2024
Currently, Tata Power’s share is trading at approximately 9% to 10% down from its 52-week high i.e. Rs. 471. According to the current technical analysis, the Tata Power share price target for 2024 is good as the chart shows bullish momentum.
In June 2024, net profit is slightly higher than in the previous quarters. Brokers like ICICI Securities are bullish on the stock and given a target price of Rs. 500.
Out target price for the Tata Power share price target for 2024 is also very similar to it. For the year, the estimated target for the stock is Rs. 490 to Rs. 500.
Tata Power Share Price Target 2025
Tata Power stock may give good returns in the upcoming years too because there is a very high chance the consolidated annual earnings will keep growing.
Mostly power sector companies are building infrastructure to fulfill the demand for the electricity of millions of people. As the demand has increased over the years due to an increase in the temperature.
As we know, Tata Power is India’s one of the top electricity suppliers to many states and millions of customers. With the increase in electricity consumption, the profits of the power sector companies will also increase which can lead stocks or the power sector to go up.
It will be impossible to give more accurate targets for the Tata Power share but the share price can go from nearly Rs. 600 to Rs. 650 in 2025.
Tata Power Share Price Target 2026
Tata Power is involved in many power sector businesses and most of the business the company is leading in India. It shows that in the upcoming years, the Tata Power company and its business will grow more.
The earnings forecast of Tata Power Company Ltd shows that in 2026, the earnings are likely to grow by 70% to 80% very easily. If the company shows earnings according to forecast data then most probably Tata Power’s share price target for 2026 can double from this level i.e. Rs. 800 to Rs. 950.
Tata Power Share Price Forecast
Most of the time forecast of any stock is calculated based on the given target prices by analysts. Analysts and brokerage firms give targets after analyzing the quarterly results of the company.
Tata Power Company Ltd’s June 2024 quarter results are released. As of 21 August 2024, only ICICI Securities has given a target for the stock of Rs. 500.
In the past 3 months, about 22 analysts have given targets for the stock. Based on the given targets the minimum estimated, average estimated, and maximum estimated target is shared below.
- Minimum Estimated Target: Rs. 240.00
- Average Estimated Target: Rs. 364.95
- Maximum Estimated Target: Rs. 490.00
FAQs
There are dozens of companies that are involved in the business of the power sector. Many companies are doing their business in only a few industries of the power sector. But companies like Tata Power, Adani Power, etc. are engaged in many businesses.
Now it is up to you in which industry you want to invest, if you want to invest in the power sector then you should choose the companies that are engaged in most of the businesses of the power sector.
You should choose an investment company that is growing, improving earnings, stable profit margins, low debt, strong fundamentals, etc.
Various factors can not be shared here but we recommend you to talk to your SEBI registered finance advisor about this.
For long-term investments in the power sector Tata Power Company Ltd is a good stock because it is a profitable company, with low debt on the company, annual earnings are improving, engaged in multiple businesses, and many more reasons to invest.
Some negative points are shared above in the “key insights” section. You should only invest when you understand the sector or industry for maximum returns.
Currently, Tata Power is trading approx 9% to 10% below its all-time high. Investing in stocks for the long term at highly discounted prices is highly profitable.
As the stock is very bullish analysts are also giving a buy signal with a target price near Rs. 490 then you can invest in a small amount and increase investments when you get more opportunity.
Final Words
Tata Power is one of the leading and largest players in the power sector in India. In most of the power-related business, the Tata Power company is leading. There are high chance that Tata Power Company Ltd will be the largest player in the future. If you are also interested in the company then you must know Tata Power’s share price target for 2024, 2025, and 2026.
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