Geojit Assigned "Hold" Rating To This Tata Stock, Target Price Rs 223/share, Gained 290.16% In 3 Yrs

Geojit has revised its rating on Tata Power Company Ltd (TPCL) to "Hold" with a target price of Rs 223 apiece. With the given target price assigned by Geojit, the stock is likely to give a return of 11%. TPCL generates and supplies the electricity. It constructs and operates independent power plants and specialises in the transmission and distribution of electricity. It is Tata group's Power sector large-cap stock. Check below to know more:

Tata Power Stock Overview and Returns

The last traded share price of Tata Power is Rs 202.30 apiece on NSE, up 0.50% from its previous close. The stock has fallen 1.17% the previous week. It has fallen 1.72% in the last 1 month, and 8.36% in the last 3 months, respectively. In the last 1 year, it has fallen marginally 0.98. It has given the highest 290.16% in the last 3 years and 135.92% in the last 5 years, respectively.

The stock recorded its 52 week high on 17 April 2022 at Rs 298.05 apiece and 52 week low on 20 June 2022 at Rs 190 apiece. This stock's market valuation is Rs 64,641.72 crore.

 

Coal price, Mundra plant boost earnings

According to the Geojit, TPCL's consolidated revenue grew 29.5% YoY to Rs. 14,129cr in Q3FY23 backed by strong operational performance by its Mundra plant and higher coal profits. EBITDA rose 49.9% YoY to Rs. 2,608cr and EBITDA margin 260bps YoY to 18.5% in Q3FY23 helped by higher revenue in the Indonesian coal business and higher efficiency in the distribution business. PAT grew 121.9% YoY to Rs. 945cr in Q3FY23.

 

Buy for a target price of Rs 223/share

Geojit said, "TPCL's focus on renewable and distribution segments can unlock long term value for its business. However, volatile coal prices and unfavorable exchange rates could act as risk factors in near term. Hence, we revise our rating on the stock to HOLD with a revised target price of Rs. 223 based on SOTP valuation."

 

Disclaimer

The stock has been picked from the brokerage report of Geojit. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.