DINESH
Latest CMP 382
Today's Change ▼ -0.20%
52-Week High / Low 459 | 343
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 469
Expected Upside 10.8%
Forecast Horizon 2 Years
Historical CAGR 12.5%
1,000 Invested 17-Aug-2006
Today's Value 10,472
Investment Period 20 Years

Stock Snapshot

Post Results Return
+0.3%
Neutral Market Reaction
1-Year Target Price
424
2-Year Target Price
469
52-Week High / Low
459 / 343
20-Day Return
-0.6%
Market Cap (Cr.)
122,103
Current PE
27.6
P/BV Ratio
3.1
Dividend Yield
0.6%
Industry PE
29.0

Price Performance

Basis of our Recommendation

Tata Power's management is focused on a strategic pivot towards renewable energy, emphasizing significant capital investments in solar manufacturing and energy storage. This aligns with India's commitment to clean energy, which is expected to drive robust demand growth. The company's ambitious target of adding 2.5-2.7 GW of renewable capacity in FY27, coupled with a strong order book in rooftop solar, positions it well for future revenue growth. However, challenges such as regulatory delays and potential margin compression in solar manufacturing could impact earnings. Vista's financial outlook reflects a recovery in revenue growth and stable margins, supported by Tata Power's proactive capital allocation and operational efficiencies. The expected upside of approximately 11% aligns with the company's fair valuation, indicating a balanced risk-reward profile. Industry dynamics, including competitive pricing pressures and the collapse of solar module exports, may temper growth but are offset by the overall expansion in renewable energy demand. Over the next 12-24 months, key opportunities include scaling renewable capacity and enhancing operational efficiencies, while watchpoints include execution risks in large projects and regulatory uncertainties

👍 Why We Like This Stock

  • Tata Power's aggressive capital expenditure plan of INR 25,000 crores is set to enhance its renewable energy capacity significantly
  • The company's strong focus on rooftop solar and energy storage solutions aligns with India's growing demand for clean energy
  • Management's commitment to operational efficiency and digital transformation is expected to improve margins and customer experience

Things To Watch Out For

  • Regulatory delays and right-of-way challenges could hinder project execution and impact revenue growth
  • Potential margin compression in solar manufacturing due to industry-wide capacity expansion poses risks to profitability
  • Fluctuating input costs and operational disruptions from extreme weather events may affect overall performance

Key Parameters

Balance Sheet Strength
Weak Cash Conversion
Market Share
Losing
Industry Outlook
Weakening
Analyst View
Buy
Dividend History
Consistent
FII Holdings
Stable

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 61,449 65,478 62,429 67,980 78,782
Profit Before Tax (Cr.) 5,341 5,974 6,730 7,102 8,153
PBT Margin 8.7% 9.1% 1078.0% 10.4% 10.3%
Net Profit (Cr.) 4,578 5,373 5,746 6,062 5,300
Earnings Per Share 12.5 14.3 13.7 14.4 16.6

Analyst Recommendations

Broker Recommendation Target Price Date
Anand Rathi ▲ Buy 436 23-Apr-2026
CLSA ► Hold 415 19-May-2026
Citigroup ▲ Buy 525 07-May-2026
Goldman Sachs ▼ Reduce 300 13-May-2026
ICICI Securities ▲ Buy 485 29-Jul-2026
JMFinancials ▲ Buy 485 09-Jun-2026
JPMorgan ► Neutral 423 28-Jul-2026
Jeffries ▼ Underperform 355 13-Aug-2026
Kotak Securities ▼ Sell 310 13-May-2026
Moneycontrol ▲ Overweight nan 13-May-2026
Morgan Stanley ► Equalweight 399 03-Jun-2026
Motilal Oswal ▲ Buy 454 29-Jul-2026
Consensus Recommendation ▲ Buy
Consensus Target 427
Coverage 12 Analysts
Analysts' Viewpoint
Tata Power's transition into a diversified clean-energy utility, with a focus on solar manufacturing, transmission, and rooftop solar, is a key growth driver. Analysts highlight the company's robust execution pipeline and diversified asset base, which mitigate earnings volatility. However, execution risks in large-scale renewable projects and regulatory hurdles, such as pending SPPAs for the Mundra plant, pose challenges. Future catalysts include the commissioning of 2.5 GW renewable capacity and scaling rooftop solar, supporting long-term growth prospects.

Company Overview

Show Company Profile

The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity in India and internationally. It operates through four segments: Thermal & Hydro, Transmission & Distribution, Renewables, and Others. The company generates power from hydroelectric and thermal sources, such as coal, gas, and oil; and provides related ancillary services. It also engages in the operation of transmission and distribution networks; and sale of power to retail customers through distribution networks. In addition, the company offers project management contracts and infrastructure management, and property development services, as well as rents oil tanks. Further, it is involved in the generation of power from renewable energy sources, such as wind and solar; rooftop solar projects; electric vehicle charging stations; manufactures solar cells and modules; engineering, procurement, and construction; home automation solutions; and maintenance services. Additionally, the company trades in power and coal; generates and distributes power; hydro pump storage, coal mining, trading, shipping, and related infra business; and provides smart meter, consultancy, networking solution, shipping and coal handling, logistics, and equipment business and related services, as well as infrastructure for electric vehicles. As of March 31, 2026, the company had an installed generation capacity of 16,716 megawatt. The Tata Power Company Limited was founded in 1915 and is based in Mumbai, India.