Tata Power Share Price can give a bullish rally up to Rs 491.30, see what is the latest news
Tata Power shares have been in the spotlight lately, with various developments impacting their performance. As of October 13, 2024, Tata Power’s share price stands at ₹461.15, reflecting a slight decline of 0.97% from the previous close of ₹460.85. This drop follows a series of fluctuations in the stock market, which has seen the stock’s price oscillate between ₹494.85 and ₹230.80 over the past year.
Main Points
- Latest Price: ₹461.15
- Previous Close: ₹460.85
- Change: -0.97%
- 52-Week High/Low: ₹494.85 / ₹230.80
- Market Capitalization: ₹1,50,756 crore
Recent Developments
- Investment Plans: Tata Power recently signed a memorandum of understanding with the Rajasthan government to invest approximately ₹1.2 lakh crore in the power sector. This announcement has generated significant interest among investors and analysts alike.
- Stock Performance: Over the past three years, Tata Power has delivered impressive returns of 193.89%, significantly outperforming the Nifty 100 index, which returned just 51.25% during the same period.
- Technical Indicators: The stock has shown bullish patterns on technical charts, with a long white candle indicating strong buying pressure. The Relative Strength Index (RSI) currently stands at 74.55, suggesting that the stock may be overbought.
Analysts have set various price targets based on recent trends and company fundamentals:
- Short-Term Target: Analysts suggest a target of around ₹540 based on current momentum and investment plans.
- Long-Term Outlook: Given Tata Power’s focus on renewable energy and infrastructure development, some analysts predict targets as high as ₹600 over the next year.
Understanding key support and resistance levels is crucial for investors:
- Resistance Levels:
- R1: ₹488.50
- R2: ₹495.75
- R3: ₹507.55
- Support Levels:
- S1: ₹476.70
- S2: ₹472.15
- S3: ₹460.35
- P/E Ratio: 40.80
- EPS (TTM): ₹11.56
- PB Ratio: 4.01
- Dividend Yield: 0.42%
- Debt to Equity Ratio: 1.66
The overall market sentiment towards Tata Power remains positive due to its strategic initiatives in renewable energy and strong growth metrics over the last few years:
- The company has maintained a healthy dividend payout ratio of approximately 22.8%.
- It aims to expand its renewable energy capacity significantly, including plans to establish electric vehicle charging stations across India.
Peer Comparison
When compared to its peers in the power sector:
| Company | Current Price | P/E Ratio | Market Cap (₹ Cr) |
|---|---|---|---|
| Tata Power | 461.15 | 40.80 | 150,756 |
| NTPC | 422.50 | 19.93 | 409,684 |
| Adani Power | 642.30 | 15.77 | 247,731 |
| JSW Energy | 706.70 | 63.21 | 123,514 |
Investor Recommendations
Several brokerage firms have recommended buying Tata Power shares:
- Motilal Oswal has given a “buy” rating with an upside potential of about 13%.
- Sharekhan also recommends buying with a target price of ₹540.
Conclusion
Tata Power continues to be a strong player in India’s energy sector with its focus on sustainable practices and strategic investments in infrastructure development.
