Tata Power Company Ltd has seen an impressive climb in its shares, with a year-to-date (YTD) increase of 32.23% in 2024. As of Wednesday, shares dipped slightly by 2.25% to ₹435.20, but the stock remains a standout performer this year. This growth comes amid the company’s recent advancements in solar energy production, positioning itself as a key player in India’s renewable energy drive. For investors looking to buy shares online, Tata Power's performance has sparked significant interest.
Tata Power’s expansion in solar energy
One of the primary drivers of Tata Power's stock surge has been the launch of solar cell production at its state-of-the-art 4.3 GW solar manufacturing facility in Tirunelveli, Tamil Nadu. The facility, equipped with cutting-edge TOPCon and Mono Perc technology, is India's largest single-location solar cell and module manufacturing plant. This development aligns with the country’s goals to expand its solar energy capacity and reduce its carbon footprint.
The current production capacity stands at 2 GW, and the company plans to increase this to 4 GW in the coming weeks. Tata Power’s move to boost domestic solar cell production not only supports large-scale renewable energy projects but also strengthens India’s position in achieving its net-zero goals.
Technical analysis of Tata Power shares
From a technical perspective, Tata Power shares have shown strong support around the ₹435-₹430 range. A break above the ₹445 mark could signal further upward movement, potentially taking the stock to ₹460 in the short term. Analysts are optimistic about the stock’s performance, with some suggesting that a decisive close above ₹445 may result in a higher target of ₹460.
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, noted that the immediate near-term support for the stock is around ₹434, with an upside target between ₹460 and ₹468. Similarly, Jigar S Patel from Anand Rathi observed that support is firmly placed at ₹435, with resistance at ₹445. He added that a break above this resistance could pave the way for a further rally.
Expert recommendations
For those looking to invest in Tata Power, Ravi Singh, Senior Vice-President at Religare Broking, suggested that the stock remains strong on daily charts. He advised potential investors to consider buying at the current market price, setting an upside target of ₹480 while placing a stop loss at ₹430.
The stock's relative strength index (RSI) stood at 55.74 on Wednesday, indicating that it is neither overbought nor oversold, suggesting room for further growth. Additionally, Tata Power shares are currently trading above their 5-day, 10-day, 30-day, and even 200-day simple moving averages, pointing towards positive momentum.
Promoter holdings and financial ratios
As of June 2024, the promoters held a 46.86% stake in Tata Power, which reflects continued confidence in the company's future growth prospects. The company’s price-to-equity (P/E) ratio stands at 56.44, and its price-to-book (P/B) ratio is at 9.01, both of which indicate strong market performance relative to its earnings and assets. Tata Power's earnings per share (EPS) were recorded at 7.89, while its return on equity (RoE) was 15.96%.
With a strong performance in 2024, Tata Power’s strategic expansion in renewable energy, particularly solar, is likely to continue driving its stock upwards. For those interested in long-term growth, Tata Power presents a compelling case, especially as India's renewable energy sector expands. Investors seeking to buy shares online may find this stock to be a promising addition to their portfolios.
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