In line with its strong uptrend, Tata Power shares have been consolidated into a band of 260 – 200 for several months. Recently, it got out of that range and tested approx. 300 marks. However, it is again in the breakout zone, domestic brokerage and research house Anand Rathi highlighted.
The brokerage has a buy rating Shares of Tata Power With a potential increase of 38% from the current stock level. “Range breakout target almost approaches 320 But we are also seeing a flag breakout on the larger time frame. Thus, we recommend traders to go long in the stock in the range of 252 – with a stop loss of 242 200 for a target of above 340 in 3 – 6 months,” recommends Anand Rathi.
Tata Power is India’s largest integrated power company with a growing international presence. The main business of the company is to generate, transmit and distribute electricity. It is one of the largest renewable energy players in India with a clean energy portfolio of 30%.
The company recently announced the consolidation of all green business (RE) under its subsidiary Tata Power Renewable Energy (TPREL), and has entered into a binding agreement with the BlackRock-led consortium, which will continue to work for a long period of stake in its renewable businesses. Ends the long awaited disinvestment.
The first round of capital infusion is expected to be completed by June 2022 and the balance amount will be infused by the end of the current calendar year, the Tata group company said in a statement.
The newly created structure will house all of Tata Power’s renewable energy business including utility-scale solar and wind generation assets, solar cell and module manufacturing, engineering, procurement and manufacturing, rooftop solar, solar pumps, energy storage and electric vehicle charging infrastructure.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.