JM Financial has suggested that you should consider buying shares of Tata Power Company. They believe the stock price could reach Rs 456 within a year, although they previously thought it could go as high as Rs 481. Right now, Tata Power’s shares are priced at Rs 369.
Tata Power has been around since 1919 and is a big player in the energy business, worth about Rs 118,547 crores. They earn money from several areas, including supplying power, managing projects, and dealing with financial leases.
In the last three months of December 2024, Tata Power made a total income of Rs 15,793 crore. This was a bit less than the previous quarter, but up when compared to the same time last year. The company also made a net profit of Rs 1,001 crore recently.
The leadership team includes key figures like Mr. Natarajan Chandrasekaran and Mr. Praveer Sinha. The auditors are SRBC & Co LLP. As of December 31, 2024, Tata Power has about 320 crore shares available for trading.
Why Should You Consider Investing?
In the latest quarter, Tata Power’s revenue was Rs 154 billion, with profits growing 8% year-over-year. The company is doing well in several areas:
– They are expanding their power transmission network (2,414 km of new lines are being built).
– Their power distribution business is expected to grow by 20% each year in Odisha.
– They have plans for renewable energy projects (10 GW in the pipeline) and pumped hydro storage.
Tata Power is investing Rs 200 billion this year to support their growth. JM Financial believes that the company’s revenue and profits will grow by 9% and 17%, respectively, over the next few years. They still keep a “BUY” rating, estimating that the price can rise by 26% based on their calculations.
As of December 31, 2024, company owners had 46.86% of Tata Power, while foreign investors held 9.45% and domestic investors 15.6%.
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