Tata Power Company Ltd shares rose sharply on Tuesday, snapping a three-day losing streak. The shares surged 4.89 percent to a day high of Rs 431.95. Brokerage ICICI Securities has resumed coverage of the stock, with a target price of Rs 490/share.
In terms of solar production, ICICI Sec stated that Tata Power began producing cells and modules in CY06 with a capacity of 0.5GW. "Backed by experience, it is now increasing production capacity by another 4GW cell and module." We observe that domestic industry is protected by customs duty on cells and modules. "We are estimating a profit of Rs 700 crore for FY26E," it stated.
India is overhauling laws to increase the solar rooftop segment with higher subsidies and a 40GW objective over the next few years; we expect Tata Power to capitalize on this opportunity. We expect a 2GW rooftop market and a profit of Rs 700 crore by FY26E," ICICI Sec added.
"We value the renewables business, including pumped storage projects, at Rs 1.04 lakh crore (Rs 326/share)," the brokerage stated. However, ICICI Sec identified delay in the execution of RE (renewable) projects as a key risk.
So to say, the stock looked strong on daily charts on technical setup. "The counter can hit an upside target of Rs 444 in the near term. Keep stop loss placed at Rs 420," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
