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Business News/ Markets / Stock Markets/  Tata Power share price hits new 52-week high; up 7% this week; here's why
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Tata Power share price hits new 52-week high; up 7% this week; here's why

Tata Power share price rose 4% to touch a 52-week high on Friday's trading session amid a bullish market and several news developments around the stock. Tata Power share price today closed at ₹274.50, up 2.44%.

Tata Power share price today opened at ₹270.30 apiece on BSE. Tata Power shares hit intraday high at ₹278.50 and low at ₹268.50. (iStock)Premium
Tata Power share price today opened at 270.30 apiece on BSE. Tata Power shares hit intraday high at 278.50 and low at 268.50. (iStock)

Tata Power share price rose 4% to touch a 52-week high on Friday's trading session amid a bullish market and several news developments around the stock. Since last Friday's closing, the Tata Power share price has increased by more than 7% this week. Tata Power share price today opened at 270.30 apiece on BSE. Tata Power shares hit intraday high at 278.50 and low at 268.50. Tata Power share price today closed at 274.50, up 2.44%. 

According to Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One, they have seen strong traction in Tata Power shares for the week as prices are up more than 7% from last week's close. Tata Power share prices are trading around the previous swing high of 277, and this momentum is likely to continue in the near term towards the target of 288 in the near term. The possible buying zone is visible around 267 levels.

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As PTI reported on Thursday, November 30, Kanpur Municipal Corporation and Tata Power's EV Charging Solutions, Tata Power's arm joined hands to install 12 electric vehicle charging stations in six key Kanpur locations.

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"Tata Power EV Charging Solutions Ltd (TPEVCSL), a Tata Power Group Company, signed a Memorandum of Association with the Kanpur Municipal Corporation to install 12 EV charging stations across six strategic locations in Kanpur," PTI said citing company's statement. 

Additionally, the company's subsidiary Tata Power Renewable Energy Ltd received a Letter of Award during the week for working with SJVN Limited (SJVN) to develop a 200 MW Firm and Dispatchable Renewable Energy project.

The analyst conference, where Tata Power reportedly stated that it is confident of doubling FY23 revenue of 560 billion, EBITDA (including other income) of 101 billion, and profit (before minority) of 38.1 billion by FY27, was another important factor supporting the stock.

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After the analyst meeting, brokerage has mixed views. With a target price of 270, global brokerage Investec Equities has maintained a "Hold" rating on the stock. Axis Securities has maintained a "Add" rating on the stock, with an unchanged target price of 296. Morgan Stanley has a "Underweight" stance on the stock, predicting a 21% decline from the close price of 270.80 on November 28. The brokerage set the target price at 213. 

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As per global brokerage house, Investec Equities report, in order to give an update on its pumped storage plants (PSP) strategy, Tata Power held its analyst day at its Bhivpuri Hydro Power plant. The main takeaway was that, following the signing of an MoU with the Maharashtra government, the company plans to build 2.8GW of PSP at Bhivpuri (1GW) and Shirawta (1.8GW) in the Raigad district by FY28, at a cost of Rs130 billion.

 Furthermore, the management has found an extra 9GW of potential PSP that could support ~30GW of RTC in Maharashtra alone. Tata Power also projects that until FY27, capex will total 600 billion, of which 45% will go towards renewable energy projects. By FY27E, revenue, EBITDA, and PAT are expected to double, according to management.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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Published: 01 Dec 2023, 04:32 PM IST
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