Shares of Tata Power are in an uptrend after four days of consecutive fall. The large cap stock touched an intraday high of Rs 254.7, rising 3.35 per cent on Wednesday. Later, it ended 1.22 per cent higher at Rs 249.70 against the previous close of Rs 246.70 on BSE.
The share stands higher than 50-day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
Tata Power stock has gained 166.72 per cent in one year and risen 13 per cent since the beginning of this year.
Total 41.90 lakh shares of the firm changed hands amounting to a turnover of Rs 105.19 crore on BSE. Market cap of the firm rose to Rs 79,787 crore.
Anand Rathi is bullish on the stock and sees an upside of 36 per cent in six months.
“In the course of its strong uptrend; Tata Power consolidated in a band of Rs 260-Rs 200 for many months. Recently, it broke out from that range and almost tested Rs 300 mark. However, it is again at the breakout zone. The target for range breakout comes around 320 but we are also witnessing a flag breakout on the larger time frame. Thus, we advise traders to go long in the stock in the range of Rs 252-Rs 242 with a stop loss of Rs 200 for the upside target of Rs 340 in 3-6 months,” the brokerage said.
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AR Ramachandran, Co-founder & Trainer, Tips2Trades said, “Higher coal prices and strong demand especially from the EV space, Tata Power has given fabulous returns over the past two years. Technically, Rs 237 remains strong and immediate support. Rs 273 will become a very strong resistance in the coming days. Investors can start buying only if daily close is above Rs 255 or near Rs 215.”
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Antique Stock Broking has given a target of Rs 342 of the stock.
“The past capital allocation was driven by 39 per cent in coal/CGPL, 32 per cent in regulated business and 29 per cent in renewables. The path ahead will have 49 per cent of regulated business (with 31 per cent coming from transmission and distribution) and 32 per cent in renewables.
Based on the current capital allocation, we value Tata Power at Rs 342 per share; where investments in Coastal Gujarat Power Ltd (CGPL) at Rs 50 per share, regulated business is valued at Rs 67 per share, consolidated renewable energy (RE) at Rs 109 per share and coal arm at Rs 116 per share.
Tata Power is engaged in electric power generation, transmission and distribution, electronic products, and service businesses. The company’s segments include generation, renewables, transmission and distribution, and others.