Shares of Tata Power Company Ltd slipped in Wednesday's trade, pausing their two-day upmove. The stock fell 2.25 per cent to hit a day low of Rs 435.20. Last checked, it was down 2 per cent at Rs 436.30. At this price, the scrip has moved 32.23 per cent higher on a year-to-date (YTD) basis.
The Tata Group firm recently informed bourses that it has begun solar cell production at its 4.3 GW solar cell and module manufacturing plant in Tirunelveli, Tamil Nadu. The largest domestic single-location facility, which is equipped with advanced TOPCon and Mono Perc technology to enhance solar cell efficiency, is seen bolstering domestic manufacturing of cells and modules, adding to India's solar energy and net-zero goals.
Tata Power said the solar cell production, currently at 2 GW capacity, will enhance its ability to meet the growing demand for high-quality and domestically produced solar components, especially for large-scale capacity-addition projects.
"The plant is expected to ramp up production with the remaining 2 GW capacity to be added over the next 4-6 weeks, reaching peak production within the next few months," the company stated.
Technically, support on the counter could be seen in the Rs 435-430 zone. And, a decisive breach above Rs 445 may trigger more upside.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The immediate near-term support would be at Rs 434 level and the upside initial targets would be around Rs 460 to Rs 468 levels in the coming days."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 435 and resistance at Rs 445. A decisive close above Rs 445 level may trigger a further upside towards Rs 460. The expected trading range will be between Rs 425 and Rs 460 for the short term."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said the stock looked strong on daily charts. "One can buy at the current market price for an upside target of Rs 480. Keep stop loss placed at Rs 430 for this trade," Singh stated.
The scrip was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 55.74. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a price-to-equity (P/E) ratio of 56.44 against a price-to-book (P/B) value of 9.01. Earnings per share (EPS) stood at 7.89 with a return on equity (RoE) of 15.96.
As of June 2024, promoters held a 46.86 per cent stake in the company.