Shares of Tata Power Company Ltd are trading near their 52 week low reached a year ago. Tata Power shares slipped to a low of Rs 335.30 on January 18, 2024. The stock is oversold on charts, signals its relative strength index (RSI), which stands at 27.9. An RSI below 30 indicates that there are more sellers than buyers for the Tata Group stock in the current session. In terms of price action, the stock is showing bearish trend as Tata Power shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
In the current session, Tata Power shares were trading 1% lower at Rs 375.20 against the previous close of Rs 378.90. on BSE.
Tata Power shares have delivered negative returns in the short term. Tata Power stock slipped 13% in six months, 18% in three months and 6% in two weeks, indicating weakness in the near term.
However, Tata Power shares logged double digit returns of 11% in a year and rose 83% in two years. In five years, the stock delivered multibagger returns of 567.29%.
Brokerage JM Financial has a price target of Rs 481 on the stock.
"Given the commissioning of its solar PV cell and module manufacturing facilities, execution momentum in renewables, anticipated awarding of new distribution licences within the next 18 to 24 months, and beginning of construction of PSPs and new hydro projects," said JM Financial. The brokerage believes there is a strong likelihood of the company achieving its 2030 targets.
Brokerage Motilal Oswal expects the stock to reach a target of Rs 509.
"Tata Power targets 23 GW of operational green generation capacity by FY30, with 65% of total capacity operational by FY30 comprising renewable energy. A phased commissioning of 5.6 GW of projects is planned between 4QFY25 and 2QFY27, with significant progress in land acquisition (40%), PPA signings (90%), and transmission connectivity (80%)," said Motilal Oswal.
ICICI Securities has a buy call with a price target of Rs 541.
Brokerage Sharekhan has a price target of Rs 540 on the Tata Group stock.
Tata Power has a well-planned strategy to shift towards clean energy and is aiming for 2.5 times rise in PAT by FY2030E over FY2024, said Sharekhan.
The company hosted an analyst meet at its 4.3GW cell and module manufacturing facility at Tirunelveli, Tamil Nadu. It aims to raise PAT (before minority) to Rs 10,000 crore in FY30, a 2.5 times growth over FY24,said the brokerage adding that capex of Rs 1.46 lakh crore is estimated from FY25-30 with 60% to be spent in the renewable business and 27% in transmission & distribution.The company has raised its annual capex target to Rs 25,000 crore (£2.3 billion), up from Rs 22,000 crore previously.