Tata Power Company Details & Introduction
Tata Power, one of India’s leading integrated power companies, has gained significant attention from investors due to its consistent growth and solid financial performance.
In this article, we will dive into a detailed analysis of Tata Power’s share price target for 2023, 2024, 2025, and 2030, providing insights into the factors that may influence its future performance and help you make a good investment decision.
This analysis and price target estimate for Tata Power will be based on our market experience, fundamental research, and technical analysis.
Tata Power’s History
Founded in 1911, Tata Power is a part of the Tata Group, one of India’s largest and most respected conglomerates.
The visionary behind the company’s inception was the renowned Indian industrialist, Jamsetji Tata.
Recognizing the importance of electricity in India’s growth and development, Jamsetji Tata envisioned harnessing the power of water resources to generate electricity.
Tata Power’s Latest Earnings And Performance
Tata Power’s latest earnings and performance have been strong and has propelled the stock to new highs.
In the fourth quarter of FY22, the company posted a net profit of ₹632.37 crore, up 48.5% from the same quarter last year. This was the 14th consecutive quarterly rise in PAT.
Tata Power Share price’s strong performance was driven by a number of factors, including.
- Higher tariffs: Tata Power’s tariffs have been rising in recent years, due to government policies that have aimed to increase the cost of electricity to consumers. This has helped to boost the company’s revenue and profitability.
- Improved operational efficiency: Tata Power has also been working to improve its operational efficiency, which has helped to reduce costs and improve profitability.
- Growth in renewable energy: Tata Power has been investing heavily in renewable energy, and this has helped to diversify the company’s portfolio and reduce its reliance on thermal power.
Tata Power’s strong performance has been reflected in its stock price, which has risen by over 20% in the past year. The company is well-positioned for continued growth in the future, as India’s demand for electricity continues to grow.
Tata Power Share Technical Analysis
Tata Power has a market capitalization of ₹69,993.91 Crore (as of June 2023). The stock has been on a bullish trend in recent months, and it is currently trading in a range that is building momentum for a potential breakout.
Tata Power’s share has been taking support from a trendline as seen in the weekly timeframe chart above. We can expect the prices to take support from the levels of around 200-210 in the coming months.
As for the trend and its direction, Tata Power’s share on a weekly timeframe chart has been trading above the 200 DMA (Moving Average) for a long time. We can expect the prices to move further, but they might face resistance at levels of around 250-260, which is also near its all-time high levels.
Once the prices cross the levels of 250-260, we can expect Tata Power’s share price to move to levels of around 300-310. This can be a good opportunity and the right price to buy Tata Power’s share as the prices are still within a range and close to the support zone.
Overall, from a technical perspective, Tata Power’s share is in a bullish trend and the prices could continue to rise in the coming weeks due to positive market factors and good momentum.
Tata Power Share Fundamental Analysis & General Information
| Company Name | Tata Power Company Ltd |
| Industry | Power |
| Country | India |
| Market Capitalization | ₹69,993.91Cr (as of 6th June, 2023) |
| Tata Power Company Ltd Revenue | ₹13,805.98Cr as on March 2023 (Q1 23) |
| Tata Power Company Ltd Net Profit | ₹777.73Cr as on March 2023 (Q1 23) |
| Tata Power Company Ltd Listing date | 03 Nov, 1994 |
| Tata Power Chairperson Name | N Chandrasekaran |
| Traded on (Exchange) | NSE/BSE |
| Official Website | https://www.tatapower.com/ |
Tata Power Key Financial Ratios
| Ratios | TATA POWER |
|---|---|
| TTM PE Ratio | 20.98 |
| PB Ratio | 5.11 |
| Dividend Yield | 0.91% |
| Sector PE | 17.55 |
| Sector PB | 2.32 |
| Sector Div Yld | 2.10% |
Let’s analyze the key financial ratios and metrics for Tata Power:
- TTM PE Ratio (Price-to-Earnings Ratio):
Tata Power’s TTM PE ratio is 20.98. This ratio indicates that the stock is valued at approximately 20.98 times its earnings over the past twelve months. A higher PE ratio suggests that the market has higher expectations for the company’s future earnings growth potential.
- PB Ratio (Price-to-Book Ratio):
The PB ratio for Tata Power is 5.11. This ratio compares the market price of the stock to its book value per share. A higher PB ratio indicates that investors are willing to pay a premium over the company’s net assets. It may suggest expectations of future growth and market optimism.
- Dividend Yield:
Tata Power’s dividend yield is 0.91%. Dividend yield is calculated by dividing the annual dividend per share by the stock’s current market price. A higher dividend yield indicates a higher return on investment through dividends. Tata Power’s dividend yield of 0.91% suggests that the company pays out a relatively small portion of its earnings as dividends.
Comparison to Sector Averages
- Sector PE: The sector PE ratio is 17.55, which is lower than Tata Power’s TTM PE ratio of 20.98. This indicates that Tata Power may have a relatively higher valuation compared to its sector peers, possibly due to stronger growth prospects or market expectations.
- Sector PB: The sector PB ratio is 2.32, significantly lower than Tata Power’s PB ratio of 5.11. This suggests that Tata Power is trading at a higher premium over its book value compared to the sector average. It could be due to perceived higher growth potential or market sentiment towards the stock.
- Sector Dividend Yield: The sector dividend yield is 2.10%, higher than Tata Power’s dividend yield of 0.91%. This indicates that Tata Power’s dividend payout is relatively lower compared to the sector average, possibly due to its investment in growth initiatives or retaining earnings for future expansion.
It’s important to note that these ratios provide a snapshot of Tata Power’s valuation and dividend policy and should be considered along with other factors, such as the company’s financial performance, growth prospects, and industry trends, to make informed investment decisions.
Tata Power Share Price Target 2023
Tata Power’s current market price stands at INR 218.90 as of 6th June 2023. Based on a comprehensive evaluation of the company’s financials, industry trends, and market conditions, we anticipate a steady growth in the share price for the year 2023.
Our target for Tata Power’s share price in 2023 is projected to be in the range of INR 280 to INR 350. Therefore, Tata Power share price target for 2023 is between Rs 200 to Rs 360.
| Year | Potential Low | Potential High |
| 2023 | 200 | 360 |
Tata Power Share Price Target 2024
As we move further into the future, Tata Power’s growth potential strengthens. The company has been actively expanding its renewable energy portfolio and diversifying into related sectors.
With a robust business strategy and favorable government policies supporting renewable energy, we expect Tata Power’s share price to witness a substantial uptrend.
After careful analysis and extensive research, we estimate Tata Power share price target for 2024 is between Rs 390 and Rs 480.
| Year | Potential Low | Potential High |
| 2024 | 390 | 480 |
Tata Power Share Price Target 2025
Looking even further ahead, Tata Power’s long-term growth prospects appear promising. The company’s consistent focus on renewable energy, coupled with its strategic partnerships and technological advancements, positions it well for continued success.
As sustainable energy gains further traction globally, we expect Tata Power to capture a significant market share, driving its share price higher.
After our research team carefully analyzed the financial data and market trend, we estimate that Tata Power share price target for 2025 is between Rs 500 and Rs 610.
| Year | Potential Low | Potential High |
| 2025 | 500 | 610 |
Tata Power Share Price Target 2030
While 2030 is almost seven years away, we can still estimate and analyze the price target for Tata Share Price.
Tata Power’s long-term growth for is looking good as the company has positioned itself as the country’s largest green energy source. Plus, with the electrical ecosystem that is being established in India, we can expect EV charging stations and renewable energy sources to improve with time.
This will further propel Tata Power’s growth and position itself as a leader in the industry. Considering all these factors, our research team and financial analyst estimate that Tata Power share price target for 2030 is between Rs 980 and Rs 1200.
| Year | Potential Low | Potential High |
| 2030 | 980 | 1200 |
Tata Power Share Price Target for 2023, 2024, 2025 and 2030
| Year | Potential Low | Potential High |
| 2023 | 200 | 360 |
| 2024 | 390 | 480 |
| 2025 | 500 | 610 |
| 2030 | 980 | 1200 |
Factors that Could Affect Tata Power Share Price Target for 2023, 2024, 2025 and 2030
- Renewable Energy Focus:
Tata Power has made substantial investments in renewable energy sources such as solar and wind power. As the world increasingly shifts toward sustainable energy solutions, Tata Power’s strong presence in this sector is likely to bolster its future performance.
- Regulatory Support:
The Indian government’s initiatives to promote renewable energy, such as tax incentives and favorable policies, provide a conducive environment for Tata Power’s expansion plans. This regulatory support creates opportunities for growth and positively impacts the company’s share price.
- Diversification Strategy:
Tata Power has been diversifying its business by expanding into new areas such as electric vehicle charging infrastructure and energy storage solutions. This strategic approach enhances its revenue streams and reduces dependence on traditional power generation, thereby driving shareholder value.
- Financial Performance:
Tata Power has demonstrated consistent financial growth, reflected in its strong revenue and profitability figures. Sound financials instill investor confidence and contribute to the positive sentiment surrounding the company’s share price.
Risk of Investing in Tata Power Share
Investing in Tata Power shares carries inherent risks.
These risks include regulatory and policy changes impacting the energy sector, market and economic uncertainties, intense competition, as well as operational and financial risks associated with managing a diverse power generation portfolio.
As a potential investor, you should carefully assess these risks before making investment decisions.
Should I Invest in Tata Power Share?
Yes, you should consider investing in Tata Power shares. The company is a prominent player in the Indian power sector and has demonstrated a focus on renewable energy, diversification, and sound financial performance.
With the growing emphasis on sustainable energy and the potential for future growth, Tata Power presents an opportunity for investors seeking exposure to the energy sector.
However, it is important to conduct thorough research, assess your own financial goals and risk tolerance, and consider market conditions before making any investment decisions.
Conclusion
In conclusion, Tata Power’s share price target for 2023, 2024, 2025, 2030, and beyond suggest potential growth opportunities driven by factors such as renewable energy focus, favorable government policies, and market conditions.
However, investing in Tata Power shares or any stock requires careful evaluation of individual circumstances and associated risks. It is recommended to conduct thorough research and seek professional advice before making investment decisions.
Disclaimer
The information provided in this article regarding the estimated share price target for Tata Power is based on assumptions and projections. Finance Fried is not authorized by SEBI (Securities and Exchange Board of India) to provide any financial advice or recommendations. It is important to note that these estimates are for informational purposes only and should not be considered as financial advice or recommendations to buy, sell, or hold Tata Power shares.
Investing in the stock market involves inherent risks, and individual investment decisions should be based on thorough research, consultation with a financial advisor, and consideration of one’s own financial goals, risk tolerance, and investment horizon. We recommend exercising caution and conducting your own due diligence before making any investment decisions.
FAQs – Frequently Asked Questions
Q. What is the target for Tata Power Share Price?
After careful analysis and extensive research, we estimate Tata Power’s share price target for 2023 is between Rs 200 and Rs 360, for 2024 is between Rs 390 and Rs 480, for 2025 is between Rs 500 and Rs 610, and for 2030 is between Rs 980 and Rs 1200.
Q. Should I buy Tata Power Share today?
Yes, you should consider investing in Tata Power and buy Tata Power shares today. The company is a prominent player in the Indian power sector and has demonstrated a focus on renewable energy, diversification, and sound financial performance.
Q. How to buy Tata Power Share?
In order to buy Tata Power Shares, you need to open a demat account. Click here to open your demat account with India’s best broker “Zerodha” and start investing for free!
Q. What is Tata Power share price target for 2025?
After careful analysis and extensive research, we estimate Tata Power’s share price target for 2025 is between Rs 500 and Rs 610.
Q. What is Tata Power share price target for 2030?
After careful analysis and extensive research, we estimate Tata Power’s share price target for 2030 is between Rs 980 and Rs 1200.
