Shares of Tata Power were trading 21 per cent lower today compared to the record high they touched in April this year. Tata Power stock was trading at Rs 235 on BSE, 21.14 per cent lower to the record high of Rs 298 hit on April 7, 2022. The market cap of the firm stood at Rs 75,601 crore on BSE. Tata Power shares were trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages in today’s session.
The Tata Group stock has gained 77 per cent in a year but risen 7 per cent in 2022. In a month, the stock has gained 2.45 per cent. Total 7.20 lakh shares of the firm changed hands amounting to a turnover of Rs 17.98 crore on BSE. Tata Power stock has gained 3.91 per cent or Rs 8.85 since the firm announced its Q1 earnings on July 26, 2022. The stock, which closed at Rs 226.15 on July 26, was trading at Rs 235 mark in trade today.However, the stock fell 5 per cent intraday to Rs 215.5 on July 27 despite a strong set of Q1 earnings.
Tata Power Q1 results: Consolidated net profit more than doubles to Rs 795 cr
Tata Power reported doubling of consolidated profit year-on-year (YoY) to Rs 795 crore in Q1 against a net profit of Rs 391 crore in the year-ago period. Sales rose 45.42 per cent to Rs 14,495 crore in the June quarter against Rs 9,968.03 crore in Q1 of the preceding fiscal.
Consolidated EBITDA fell by Rs 258 crore to Rs 2,107 crore in Q1 of the current fiscal against Rs 2,365 crore in Q1 FY22. Similarly, standalone EBITDA fell to Rs 1,271 crore as against Rs 1,405 crore in Q1FY22 (due to favourable regulatory order in Mundra the previous year). Operating profit (consolidated) fell by Rs 223 crore to Rs 1,964 crore in Q1 of the current fiscal against Rs 2,187 crore operating profit in the corresponding period of the previous fiscal.
In Q1 of the current fiscal, 38.82 lakh public shareholders held a 53.14 per cent stake or 169.80 crore shares in the firm. Six promoters held 46.86 per cent stake or 149.72 crore shares in the last quarter. 38.35 lakh public shareholders held 77.22 crore shares of the firm, amounting to a stake of 24.17 per cent with an individual share capital of up to Rs 2 lakh.
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61 public shareholders held 2.24 crore shares of the firm, amounting to a stake of 0.70 per cent with an individual share capital of over Rs 2 lakh. 46 mutual funds owned 3.83 per cent stake or 12.24 crore shares in the firm in Q1. 393 foreign portfolio investors (FPIs) owned 32.27 crore shares or 10.10 per cent stake in Tata Power at the end of June quarter.
Analysts are majorly bullish on the shares of Tata Power in a highly volatile market.
Here’s a look at what they said about the outlook of the stock.
AR Ramachandran, Co-founder & Trainer, Tips2Trades
“Strong demand for power resulting in improved financials has led to power sector stocks recovering very well including Tata Power. Rs 220 remains a strong support. A daily close above Rs 242 can lead to targets of Rs 254-Rs 265 in the coming weeks.”
Manoj Dalmia, founder and director, Proficient Equities
“Tata Power is facing some resistance at current levels. Investors can wait for it to cross Rs 242 with a target of Rs 261.70 bearing a small stop loss. Long-term investors can accumulate on dips.”
Ravi Singhal, CEO, GCL
“As we can see, the stock has been trading in a range for a long time. If it closes above Rs 247, it could reach Rs 300 to Rs 340. In that case, keep a stop loss of Rs 222.”
Ravi Singh, vice president and head of research, Share India
“Tata Power has delivered robust results growth numbers. The surge in power demand and high profits through coal venture has increased the company’s revenue growth. The stock on technical setup is also witnessing surge in volumes and showing strength on the momentum indicators on a daily basis. After a brief correction, Tata Power stock may touch the levels of Rs 255 in the near term.”
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