Tata Power share price: In terms of earnings, the energy division of the Tata group saw a rise of more than 22% in the first quarter, thanks to strong growth in its transmission and distribution sector. The net profit for the quarter that finished on June 30 rose from Rs 795 crore a year ago to Rs 972 crore.
In the last six months, shares of Tata Power Company Ltd have gone up by a little more than 16%. An expert said that around the stock’s one-year high price, some people took profits. On Friday, the stock stopped going up for three days in a row and was last seen moving 0.44 percent down at Rs 236.10. At this price, the stock was 5.94% below its 52-week high of Rs 251, which was reached on September 7, 2022.
The energy division of the Tata group saw a rise in earnings of more than 22% in the first quarter. This was due to strong growth in its transmission and distribution sector. The net profit for the quarter that finished on June 30 rose from Rs 795 crore a year ago to Rs 972 crore.
The transmission and distribution segment grew by 3.6%, which helped the operations section bring in nearly 5% more money, or Rs 15,213 crore. This part of the business is the biggest for the company.
As building projects picked up, sales of commercial cars went up. This is because the government pushed for more capital spending (capex) in its last full Budget before elections in 2024.
CLSA, a foreign firm, has raised its price goal for Tata Power shares from Rs 189 to Rs 195, but it has kept its “Sell” rating because valuations are too high. “We give Tata Power a “Sell” rating, even though it hasn’t done well. We think this is because a retail rush, a rise in coal prices, and a strategic stake sale of its renewables (RE) arm have caused it to grow faster than its fundamentals. We think that Odisha’s power distribution and its growth into pump storage are still the best news. Weak coal prices are a big reason why its earnings per share (EPS) are at risk,” it said. From a technical point of view, the counter could get support at Rs 232, Rs 230, and Rs 210.
Osho Krishan, Senior Analyst, Technical & Derivative Research at Angel One, said, “Tata Power has strongly recovered from the lows of Rs 180-odd zone and has risen nearly 25% in the current financial year. At the moment, the stock is close to the higher end of the range of stability, which has a strong bias. In terms of levels, the immediate support is around Rs. 230, and the 200-SMA is the most important support around Rs. 210. On the higher end, a clear break above Rs 245 would lead to new long positions in the counter until the next possible resistance at Rs 263-267 in the same time frame.
“The stock has experienced some profit booking from the top level of Rs 245 to consolidate with support maintained at Rs 232 levels,” said Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher. For the price to go up again, it needs to close above Rs 237. And, a clear break above the Rs. 245 zone would signal a new move up, with Rs. 258 and Rs. 270 as the next goals.
Ravi Singh, a market expert, said, “The Tata Power share price is likely to go up because more people use electricity in the summer.” High demand for electricity and a rise in electricity prices would help the company keep its gross margins high. The stock’s daily and weekly charts show that it is strong enough to reach Rs. 255 in the next few trading sessions. Indian market standards, on the other hand, were in the red today. Pharmaceutical, healthcare, consumer goods, bank, and financial stocks were to blame.