Tata Power shares fall 7% from record high ahead of Q3 results

Shares of Tata Power Company Ltd fell 7% from record high ahead of the Tata Group firm’s Q3 earnings set to be announced today. Tata Power stock fell 6.95% from its record high of Rs 412.75 hit in early trade today. Market cap of the firm declined to Rs 1.25 lakh crore.

On an intraday basis, Tata Power shares slipped 5.76% to Rs 384.05 against the previous close of Rs 407.55 on BSE. On the other hand, Tata Power stock fell to a 52 week low of Rs 182.45 on March 28, 2023.

Tata Power stock has gained 90.17% in a year and zoomed 57% in three months. Total 33.74 lakh shares of the firm changed hands amounting to a high turnover of Rs 132.82 crore on BSE.

The stock has seen very less volatility in a year with a beta of 0.5. In terms of technicals, the relative strength index (RSI) of the stock stands at 83.7, signaling the stock is trading in the overbought zone. Tata Power shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 200 day moving averages.

Tata Power reported a 8.79% year-on-year (YoY) growth in its consolidated net profit for the July-September 2023 quarter to Rs 1,017.41 crore against a net profit of Rs 935.18 crore in the year-ago period. Revenue for the period under review rose 9% to Rs 15,442 crore.

The company attributed its growth in revenue and profits to its "healthy balance sheet, operational excellence, and synergies across all business clusters".

Antique Broking has a target price of Rs 450 for Tata Power against Rs 422 earlier.

Antique said Tata Power was eyeing 12 GW in pumped hydro in Western India, where the land bank is in excess of 36,000 acre. Pumped hydro storage projects (PSPs) are established or proven models, costing less than Li-ion batteries, it said. Tata Power is working on 1 GW Bhivpuri PSP (6 GWh), which will cost Rs 4,700 crore, which is at the lower end of the cost curve.

Also read: Hot stocks on February 9: Tata Power, NCC, Birla Corp, YES Bank and more

Also read: HDFC Bank shares hover near one-year low level. Is it time to accumulate?