Tata Power shares were in demand on Thursday, a day after the Tata group power generation company bagged a smart meter deal worth Rs 1,744 crore. The Tata Power stock gained by as much as Rs 5.9 or 2.6 per cent to touch Rs 227.5 apiece on BSE, coming within Rs 24 of a 52-week high registered in September 2022. 

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As part of the deal, Tata Power will implement a smart metering project for Chhattisgarh State Power Distribution Company. Tata Power will install and maintain 18.6 lakh smart meters in the Raipur area of Chhattisgarh comprising Raipur City and Raipur rural areas, it said. 

The project will be completed over a period of 10 years, Tata Power said. 

Tata Power said the letter of award (LoA) has been issued in conclusion to the tender floated by Chhattisgarh State Power Distribution Company for three packages for different areas. Tata Power participated in the second package and emerged as a winner.

The smart metering project is significant and a testament to the company's execution expertise in delivering high-value and specialised projects aimed at transforming the power distribution domain, said Tata Power CEO and MD Praveer Sinha.

The project includes design, supply, installation and commissioning, followed by operation and maintenance of smart meters at the consumer-end and at a distribution transformers level, he said.

Chhattisgarh State Power Distribution Company is responsible for providing electricity to consumers across the state.

ALSO READ: National Smart Grid Mission | These states have the maximum number of smart power meters so far

What to do with Tata Power shares?

Globe Capital Markets VP Research Himanshu Gupta expects a breakout in the stock at Rs 225, he told Zee Business.

He recommends buying Tata Power futures at Rs 227 with a stop loss at Rs 224.5 for targets of Rs 232 and Rs 235.

Sumeet Bagadia, Executive Director at Choice Broking, suggests those holding Tata Power shares to hold on to their positions. 

He has a 'buy' call on Tata Power with a target of Rs 232 and Rs 235 with a stop loss at Rs 223. 

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