This Tata group stock continues to woo investors after nearly 2x rise in 1 year; analysts peg targets as high as Rs 520/share

Tata Power Stock Price Target, Share Market News: Tata Power shares have increased investors' wealth by 98 per cent in a year and counting. One of the top-performing Tata group stocks in the recent past, Tata Power has moved within a range of Rs 320-464 so far in 2024 with analysts pegging their targets as high as Rs 520, implying upside potential of 62.6 per cent from its lower end. 

Should you buy, sell or hold Tata Power (TATAPOWER) shares?

Zee Business analyst Kushal Gupta suggests investing Tata Power shares for a one-year target price of Rs 520. 

Primarily involved in the business of power generation, transmission and distribution, Tata Power builds and operates independent power plants and also makes solar roofs. The Tata group power generator plans to build one lakh electric vehicle charging stations by 2025, Gupta pointed out.

Geojit Financial Services has maintained a 'hold' rating on Tata Power with a target of Rs 490 citing strong performance but expensive valuation. 

The brokerage anticipates a continued uptrend in Tata Power's performance, after staging a strong show in the March quarter, driven by rising demand, capacity expansion, and promising opportunities in the rooftop solar business, renewables, and generation segments.

Geojit values Tata Power at 12 times its EV/EBITDA estimate for FY26.  

Key things to know about Tata Power

Tata Power staged a strong quarterly performance in the final three months of FY24, powered by its generation and renewables units.

While its consolidated net profit grew more than 15 per cent on a year-on-year to Rs 895.2 crore, its revenue increased 27 per cent to Rs 15,847 crore while its EBITDA expanded 21 per cent to Rs 2,332 crore, according to a regulatory filing.

For the full financial year, the Tata group company reported record net profit, revenue as well as EBITDA, on the back of "a strong rising share from its generation, transmission and distribution, and renewables units.

The businesses contributed about 74 per cent to its net profit in the financial year, higher than 44 per cent the previous year.

The power generation company plans to increase its capex to Rs 20,000 crore in FY25 from Rs 12,000 crore the previous year. 

It aims to use 50 per cent of its total capex for renewables and the remainder for businesses in other sectors including distribution, transmission and coal-based plants. 

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