Tata Power shares surge around 95% in a month. What's driving the rally?
Premium- Tata Power shares have been surging on Tata Motor's recent EV announcement as the Tata Group's power utility is in a partnership with Tata Motors to develop EV charging infrastructure
Shares of Tata Power jumped as much as 18% in Monday's trading session deals at ₹263 per share on the BSE. The stock has risen around 95% in the last one month as there have been multiple factors that have made the stock very attractive, analysts said, and see further upside on the Tata group stock.
"Tata group is the major beneficiary of EV theme as it is getting the benefit of early mover and strategic asset allocation. Tata group worked very well in EV theme with a proper synergy of Tata Motors, Tata Chemical, and Tata Power. Tata Power could be a leader in EV infrastructure in the country furthermore other renewal businesses may be revalued as many PE investors are betting on clean energy, said Santosh Meena, Head of Research, Swastika Investmart.
Tata Power surged on Tata Motor's recent EV announcement as the Tata Group's power utility is in a partnership with Tata Motors to develop electric vehicle charging infrastructure. Moreover, Tata Power's wholly-owned subsidiary Tata Power Solar Systems recently bagged ₹538 crore contracts to build 100 MW of distributed ground-mounted solar projects for EESL.
"The pick-up in economic activity has led to a surge in power demand which has made many power and energy stocks very attractive. Also, recent orders and deals bagged by Tata Power in the solar power and electric vehicle charging segment have pumped up the stock," said Sonam Srivastava, Founder, Wright Research.
“Tata Power has entered into a multi-year bull market after crossing the 100 mark.. The overall texture is bullish and it can see further upside towards 300 or higher levels therefore investors should remain invested while any correction towards the 200 level will provide a great buying opportunity," Meena added.
