Tata Power Shares Fall 2% After Rs.30,000 Cr Assam Deal; Analysts Recommend ‘BUY'

Tata Power Share Price: Tata Power shares are trading in the red zone today, Rs. 346.50 per share, down 1.42% from the previous close of Rs. 351.50. The stock has been underperforming, in line with other Tata Group stocks, such as Tata Motors shares, which continue to hit new lows. Additionally, Tata Elxsi, Tata Consumer, and Tata Investment are also trading in negative territory today.

Tata Power Stocks in Focus

Tata Power shares lately have been underperforming in the stock market, mirroring the broader market downturn. The stock has been on a consistent decline, slipping 3.51% in the last five trading sessions and nearly 1% this month during the volatile trading. Over the past six months, Tata Power shares have dropped 18.77%, while the year-to-date decline stands at 11.35%.

Tata Power Partners with Assam for ₹30,000 Crore Renewable Energy Expansion

Tata Power Company Ltd. yesterday signed a landmark Memorandum of Understanding (MoU) with the Assam government to develop 5,000 MW of renewable and clean energy projects, including solar, wind, hydro, and energy storage, with a huge investment of Rs. 30,000 crore over the next five years. This collaboration will help Assam to achieve the target of 500 MW of solar capacity by 2027.
The strategic partnership was announced at the Advantage Assam 2.0 Investment and Infrastructure Summit 2025. The MoU was signed by Dr. Krishna Kumar Dwivedi, Principal Secretary, Power, Government of Assam, and Dr. Praveer Sinha, CEO & MD, Tata Power.
Additionally, Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, has signed a separate MoU with Assam Power Distribution Company Limited (APDCL). This agreement focuses on scaling rooftop solar projects under the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGY).

Tata Power Share Price Target

According to Mirae Asset, "Power PSUs experienced a mixed quarter, with NTPC reporting a 6% YoY growth in adjusted PAT, while Power Grid saw a slight 2% decline in Q3FY2025. Tata Power's adjusted earnings grew by 8% YoY, whereas CESC faced a 6% decline in PAT. The report attributes this to weak power demand amid a soft macro-environment and winter season impact."
Tata Power remains one of the top preferred picks in Mirae Asset's report. The brokerage firm has issued a 'Buy' rating, with a target price of Rs.485, compared to the current market price of Rs. 347.

Tata Power Q3 Results

Tata Power announced its Q3 results on February 4, reporting a 10.35% year-on-year increase in net profit to Rs. 1,187.54 crore, up from Rs. 1,076 crore in the same period last year. On a quarterly basis, net profit grew 8.6% from Rs. 1,093 crore in the previous quarter.
For the quarter that ended December 2024, the company's revenue from operations stood at Rs. 15,391 crore, rising 5% from Rs. 14,651 crore a year ago. Additionally, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose 7% YoY to Rs. 3,481 crore, compared to Rs. 3,250 crore in the corresponding quarter the previous year.

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