Imagine a force that has been tirelessly working for over a century, driving India’s growth, lighting up millions of homes, and shaping the country’s energy landscape. This force is Tata Power, a subsidiary of the globally acclaimed Tata Group. Tata Power’s story is one of innovation, resilience, and a steadfast commitment to sustainable development. Founded by the legendary industrialist Jamsetji Tata, Tata Power has been a cornerstone of India’s industrial revolution. But the essence of Tata Power extends far beyond its corporate identity. It’s a symbol of India’s resilience, showcasing its technological prowess and reflecting its commitment to sustainable development. But Tata Power’s narrative extends beyond its impressive growth and diverse portfolio. It’s a story of relentless pursuit of excellence, commitment to sustainability, and a vision to empower the nation. It’s about bringing light to homes, powering industries, and fostering growth in communities. It’s about leveraging the power of nature, from the force of rivers to the warmth of the sun, to boost India’s development. Over the one year, Tata Power share has not witnessed much price action, and it has left investors on the edge of a consolidation. Hence, our Tata share price prediction aims to dive deeper into the stock’s technical analysis and past potential to help you choose a strategic investment plan based on its future price trajectory.
Tata Power: A Quick Introduction
Tata Power’s journey began in 1911 when it was established by the visionary industrialist Jamsetji Tata. The company’s first hydroelectric project in Khopoli, Maharashtra, marked the beginning of India’s tryst with renewable energy. Over the years, Tata Power has grown exponentially, diversifying into thermal, hydro, solar, and wind energy, making it India’s largest integrated power company.
Tata Power’s strength lies in its diverse portfolio. The company operates in all aspects of the power sector, including generation, transmission, distribution, and trading. It has a generation capacity of over 12,000 MW, with a balanced mix of thermal, hydro, solar, and wind energy. This diversity allows Tata Power to maintain a steady supply of power, irrespective of the vagaries of nature or market fluctuations.
Tata Power has always been at the forefront of adopting innovative technologies. The company was the first in India to set up a 500 MW unit and a 150 MW pumped storage unit. It has also pioneered the use of supercritical technology in thermal power generation, which enhances efficiency and reduces emissions.
Tata Power’s commitment to innovation extends to its customer-centric initiatives as well. The company has introduced digital platforms for customer service, smart metering solutions for efficient energy management, and electric vehicle charging stations, reflecting its readiness to embrace the future.
Tata Power: Operations And Roadmap
Tata Power’s operations are guided by a strong commitment to sustainability. The company has been steadily increasing its renewable energy capacity, with a target to achieve 70% of its total generation from clean energy sources by 2025. Tata Power’s sustainability initiatives also include water conservation, waste management, and biodiversity conservation.
Tata Power, a global entity, has a significant presence not only in India but also in Singapore, Indonesia, South Africa, and Bhutan. Within India, the Tata Power Group operates across 35 different locations.
The company’s thermal power stations are strategically located across the country. In Mumbai, you’ll find them at Trombay, in Gujarat at Mundra, in Jharkhand at Jojobera and Maithon, in Odisha at Kalinganagar, in West Bengal at Haldia, and in Karnataka at Belgaum. The company’s hydro stations are nestled in the Western Ghats of Maharashtra, while its wind farms are spread across Ahmednagar, Supa, Khanke, Brahmanwel, Gadag, Samana, and Visapur.
Tata Power has been a pioneer in the power sector, installing India’s first 500 MW unit at Trombay, the first 150 MW pumped storage unit at Bhira, and a flue gas desulphurization plant for pollution control at Trombay. The company has significant generation capacities in the states of Jharkhand and Karnataka and operates a distribution company in Delhi, serving over a million consumers across a 510 square km area in North Delhi. The peak load in this region is approximately 1,150 MW.
On 24th July 2012, Tata Power announced the commissioning of the second unit of the 525 MW capacity of the Maithon mega thermal project in Dhanbad, following the successful commissioning of the first unit of identical capacity in September 2011.
In addition to these operations, Tata Power also runs a distribution company in Ajmer. Under its subsidiary, Tata Power Solar, the company generates 160 MW of solar energy at Jetstar, Rajasthan.
Tata’s Projects
Tata Power has a joint venture with the PowerGrid Corporation of India, holding a 51:49 stake, to undertake the Tata transmission project. Spanning 1,200 km, this project is the first of its kind in India to be financed through a public-private partnership.
The company has ambitious plans to expand the generation capacity of the Mundra plant, India’s first operational ultra mega power project, from 4,000 MW to 5,600 MW.
Tata Power has also entered into a 74:26 joint venture with the Damodar Valley Corporation to operate a 1,050 MW coal-based thermal power plant at Maithon in the Dhanbad district of Jharkhand, known as Maithon Power Limited. Both units were commissioned on 24 July 2012. In addition, the company has another 74:26 joint venture with Tata Steel Limited to operate thermal power plants that meet Tata Steel’s captive requirements under the name Industrial Energy Limited.
In a pioneering move, Tata Power has partnered with Sunengy, an Australian firm, to construct India’s first floating solar plant, leveraging Liquid Solar Array technology.
In 2016, Tata Power made a significant stride into India’s renewable energy market with its acquisition of Welspun Renewables. The deal, worth a record $1.3 billion, marked the largest acquisition in the Indian renewables sector.
Tata Power has also secured a 25-year license for the distribution and retail supply of electricity in five circles in Odisha, collectively known as the Central Electricity Supply Utility of Odisha (CESU), for approximately Rs 175 crore.
Tata Power Share Price Forecast: Price History
Tata Power, a significant entity within the prestigious Tata Group, first graced the Bombay Stock Exchange in 1911. However, it was not until the late 1990s that the company’s share price started gaining substantial attention. Tata Power shares began their journey on the Indian stock market at a humble price of ₹10 in 1999, maintaining this level into the early 2000s.
The dawn of 2003 marked a steady ascent in Tata Power’s share price. The company’s strategic efforts to expand its generation capacity and diversify its energy portfolio began to bear fruit. Its commitment to sustainable growth and renewable energy investments struck a chord with investors, propelling the share price from ₹10 to ₹30 by the end of 2003.
The following years saw the share price gaining significant momentum, peaking at ₹110 in early 2008. However, the global financial crisis of 2008 put a halt to this upward trajectory. Like many companies worldwide, Tata Power’s share price experienced a temporary decline. Yet, the company’s robust fundamentals and diverse portfolio enabled it to weather the storm and bounce back stronger.
Post-recovery in 2009, Tata Power’s share price once again became the center of attention, reaching ₹130 by the end of the year. Despite a slight decline, Tata Power concluded the decade at a respectable price of around ₹125.
However, 2011 brought challenges as investors began shifting their focus to emerging companies, causing a dip in Tata Power’s share price. The price fell to ₹84 in early 2011 and continued to decline, dropping below ₹80 in 2013 amidst market volatility. The price continued to witness downward volatility, and it sparked a severe downturn in 2020.
The year 2020, marked by the COVID-19 pandemic, brought unprecedented challenges. Tata Power’s share price was not immune to the initial market volatility caused by the pandemic, plummeting to a low of ₹30. However, demonstrating remarkable resilience, the price quickly rebounded from these lows.
In the subsequent years, Tata Power’s share price experienced a meteoric rise, surpassing the ₹200 level by 2022. Despite minor downward pressures, the share price continued its upward trajectory, yielding a 200% return since its 2020 low.
Tata Power Share Price: Technical Analysis
Recently, the Tata Power share price experienced a solid bearish trend, which has brought more selling pressure to the market. However, the price has been on a steady recovery trend since April and after facing rejection at ₹232, Tata Power sparked a bearish rally. The market was heavily influenced due to the poor performance; however, it showed a strong recovery on the 4-hour price chart and maintained its price stability. Despite facing critical support levels, Tata Power has managed to display an uptrend and is now above the bearish territory. A thorough technical analysis of Tata Power’s share price reveals bullish indicators, which may soon send the price to new resistances. Investors should exercise caution as the short-term growth strategy for Tata Power appears volatile. The current momentum may not be sustainable as Tata Power is still in the recovery phase.
According to TradingView, the Tata Power price is currently trading at ₹221.05, reflecting a decrease of over 0.36% in the last 24 hours. Our technical evaluation of Tata Power’s price indicates that the bearish momentum may soon fade as bulls are making a comeback to prevent the price from dropping below ₹213. Examining the daily price chart, Tata Power’s share price has found support near the ₹210 level, from which the price may try to gain further momentum and breach upcoming Fib channels. As the Tata Power price’s bearish levels struggle just above the EMA20 trend line, bears may soon gain confidence and open short positions, pushing the price to lower levels in the coming days. The Balance of Power (BoP) indicator is currently trading in a positive region zone at 0.76, hinting at an upward correction ahead.
To thoroughly analyze the price of Tata Power shares, it is crucial to take a look at the RSI-14 indicator. The RSI indicator recently experienced a solid decline as Tata Power’s price dropped below the immediate support of ₹226. The trend line is heading toward the selling region as it currently trades at level 44, and there’s an increased selling pressure building up to begin a downward correction for the Tata Power price. It is anticipated that Tata Power’s price will soon attempt to break below its 38.6% Fibonacci level to achieve its short-term bearish goals. If bears fail to plunge below this Fibonacci region, an uptrend might be on the horizon.
As the SMA-14 continues its downward swing as it trades at 56-level, it trades slightly above the RSI line, potentially holding promises of the stock’s upward correction on the price chart. If Tata Power shares surge, it can pave the way to resistance at ₹235. A breakout above will drive the share price toward the upper limit of the Bollinger band at ₹255.
Conversely, if Tata Power fails to hold above the critical support level of ₹210, a sudden collapse may occur, resulting in further price declines and causing the Tata Power share to trade near the Bollinger band’s lower limit of ₹193. If the price fails to continue a trade above, it may trigger a more significant bearish downtrend to ₹180.
Tata Power Share Price Prediction By Blockchain Reporter
Tata Power Share Price Prediction 2023
As we step into 2023, Tata Power’s share price is expected to reach an average of ₹300, with a potential low of ₹250 and a high of ₹350. This projection is underpinned by the company’s commitment to sustainable growth and its strategic investments in the renewable energy sector.
Tata Power Share Price Prediction 2024
Advancing into 2024, the upward trend is expected to continue, with the share price climbing to an average of ₹370. The potential low and high for this year are projected at ₹320 and ₹420, respectively. This anticipated growth is reflective of Tata Power’s strategic initiatives and robust performance.
Tata Power Share Price Prediction 2025
By 2025, the share price is predicted to reach an average of ₹440, with a potential dip to ₹390 and a surge to ₹490. The driving force behind this increase is likely to be the company’s continued expansion in the renewable energy sector.
Tata Power Share Price Prediction 2026
The year 2026 could see the share price rising to an average of ₹510, with a potential low of ₹460 and a high of ₹560 due to Tata Power’s strong fundamentals and its diverse portfolio of investments.
Tata Power Share Price Prediction 2027
As we move into 2027, the share price is expected to reach an average of ₹580, with a potential low of ₹530 and a high of ₹630.
Tata Power Share Price Prediction 2028
Advancing into 2028, the share price is expected to climb to an average of ₹650, with a potential low of ₹600 and a high of ₹700. This projected growth is indicative of Tata Power’s robust performance and its continued focus on renewable energy.
Tata Power Share Price Prediction 2029
By 2029, the share price is predicted to reach an average of ₹720, with a potential dip to ₹670 and a surge to ₹770. The reason behind this increase is likely to be Tata Power’s strategic initiatives and its strong positioning in the energy sector.
Tata Power Share Price Prediction 2030
In 2030, the share price is expected to rise to an average of ₹790, with a potential low of ₹740 and a high of ₹840.
Tata Share Price Prediction: Industry Experts
Gejit BNP Paribas voiced concerns about the instability of coal prices and unfavorable exchange rates in the short term. Consequently, they adjusted their rating of the stock to HOLD, with a new target price of ₹223. They noted:
“The company, with its robust order book and the inauguration of new plants, is well-placed to capitalize on increased power demand.” Conversely, ICICI Securities, in a 6 February analyst note, updated its projections for the 2023 and 2024 full-year earnings, taking into account higher coal prices and earnings from the sale of power from the Mundra plant. They kept a “Buy” rating, with a price target of ₹262.
BOB Capital Markets recognized that Tata Power’s third-quarter performance was slightly below their expectations. However, they remained optimistic about the company’s cautious approach to adding renewable capacity without sacrificing margins. They stated:
“The resolution of CGPL’s losses is a key point to watch, and we predict that a favorable outcome could add an upside potential of ₹10-12 per share to our fair value.” BOB Capital Markets kept its BUY rating on Tata Power and its target price of ₹271, highlighting the growth in renewables and return on equity improvement in green subsidiaries as key positive factors.
Tata Power Financial Results
Tata Power experienced significant year-on-year growth in net profit for the fourth quarter of FY23, although its sequential performance was weaker. The Tata Group-supported company reported a consolidated net profit of ₹938.81 crore in Q4FY23, a substantial increase of 48.45% YoY but a decrease of 10.77% QoQ. The company exceeded bottom-line expectations but fell short in terms of revenue. Additionally, the company announced a 200% dividend for its shareholders.
In the fourth quarter of FY22, the company reported a net profit of ₹632.37 crore, while its Profit After Tax (PAT) was ₹1,052.14 crore in the December 2022 quarter. The PAT for Q4 showed robust year-on-year growth due to strong performance across all sectors. This marks the 14th consecutive annual increase in PAT. The company’s EBITDA for the quarter was ₹3,101 crore, a 38% increase from ₹2,253 crore in the March 2022 quarter, driven by reduced under-recovery in Mundra, added capacity in Renewables and the execution of Solar EPC projects.
However, Tata Power’s consolidated revenue from operations for Q4FY23 was ₹12,453.76 crore, a modest increase of 4.12% from ₹11,959.96 crore in the same quarter of the previous fiscal year. This was due to increased sales across Distribution Companies and added capacity in Renewables. Despite this, the performance marked an 11.85% decrease from the revenue of ₹14,129.12 crore reported in Q3FY23.
Dr. Praveer Sinha, CEO & MD of Tata Power, said, “We are delighted to announce that Tata Power has delivered a strong performance in FY23 with robust growth across all our business clusters – Generation, Transmission, Distribution, and Renewables. The growing need for power has enabled us to keep our momentum strong as we remain committed to meeting the nation’s demand with reliable and quality power supply.”
Should You Invest In Tata Power Share? Here’s The Best Price
Whether or not to buy Tata Power shares depends on various factors, including your investment goals, risk tolerance, and market analysis. Tata Power has shown significant growth, particularly in its renewable energy sector, and has consistently increased its Profit After Tax (PAT) on an annual basis. However, it has also experienced some volatility, with a recent quarter-on-quarter decline in revenue. Analysts have mixed views, with some recommending a “Buy” rating due to the company’s growth in renewables and others suggesting a “Hold” due to concerns about unstable coal prices and exchange rates.
However, our Tata power share price forecast advises investing in this stock at ₹200 for a long-term profitable return.
Conclusion
Tata Power, a leading player in the Indian energy sector, has shown a strong commitment to expanding its renewable energy capacity. Its shares have seen significant growth, reflecting the company’s robust performance across all its businesses.
Investors and traders are now forecasting a significant surge in its share price in the coming years. This optimism is fueled by the company’s consistent financial performance, its strategic investments in renewable energy, and the increasing demand for clean energy.
FAQ
Tata Power shares began their journey on the Indian stock market at a price of ₹10 in 1999, which climbed to ₹110 in early 2008. The share price dipped due to the global financial crisis of 2008 but rebounded in 2009. After a downward trend in the early 2010s, the share price experienced a significant rise, surpassing the ₹200 level by 2022.
Tata Power’s diverse portfolio in all aspects of the power sector, including generation, transmission, distribution, and trading, allows it to maintain a steady supply of power. It has a generation capacity of over 12,000 MW, with a balanced mix of thermal, hydro, solar, and wind energy.
Tata Power has embarked on several significant projects including a joint venture with the PowerGrid Corporation of India for a transmission project, expansion plans for the Mundra plant, a joint venture with the Damodar Valley Corporation to operate a coal-based thermal power plant at Maithon, and a partnership with Sunengy to construct India’s first floating solar plant.
By 2025, the share price is predicted to reach an average of ₹440. In 2026, it could rise to an average of ₹510. By 2027, the average price could be ₹580. In 2028, it’s projected to climb to an average of ₹650. By 2029, the share price is predicted to reach an average of ₹720, and in 2030, it could rise to an average of ₹790.
In Q4FY23, Tata Power reported a consolidated net profit of ₹938.81 crore, a substantial increase of 48.45% YoY but a decrease of 10.77% QoQ. Its consolidated revenue from operations for Q4FY23 was ₹12,453.76 crore, a modest increase of 4.12% from the previous fiscal year.
Tata Power has been steadily increasing its renewable energy capacity, with a target to achieve 70% of its total generation from clean energy sources by 2025. Its sustainability initiatives also include water conservation, waste management, and biodiversity conservation.
Gejit BNP Paribas adjusted their rating of the stock to HOLD, with a new target price of ₹223, while ICICI Securities kept a “Buy” rating, with a price target of ₹262. BOB Capital Markets maintained its BUY rating and target price of ₹271, highlighting the growth in renewables and return on equity improvement as key positive factors.
The share price for Tata Power is expected to reach an average of ₹300 in 2023, with a potential low of ₹250 and a high of ₹350.
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