Tata Power sheds 2% as global brokerages turn bearish after analysts meet

Tata Power share price: Shares of Tata Power in trade on Thursday (November 30) declined after global brokerages turned bearish on the counter post its investors meet. In early trade at day's low, the stock shed 1.7 per cent to Rs 268.65. The company's all-time high of Rs 298.05 was recorded on April 7, 2022.
 
In its analyst presentation, the company said the power sector is witnessing strong tailwinds and is poised to register expansion as India grows. Further, in the presentation, the utility company highlighted that renewable energy remains its key growth driver. Clean and green energy will lead the way as India targets 500 GW RE capacity by 2030, according to the presentation.
 
Despite the optimism that the company evinced, global brokerages have turned bearish on the counter.
 
Global brokerage Morgan Stanley has turned underweight on the counter and has suggested a target of Rs 213 as against the current market price of Rs 273. The brokerage said that, in comparison to the last analyst meeting, it has lowered the FY27 revenue and PAT guidance by 13 per cent and 17 per cent, respectively; nonetheless, it appears more feasible.
 
For FY27, the company has estimated revenue at 2x what has been realised in FY23. In FY23, the company earned a revenue of Rs 56,033 crore. Also, it sees PAT coming in twice as much as what was achieved in FY23.