Crorepati Tata Stock Inks 1.2 Lakh Cr MoU With Rajasthan Govt, Buy For Highest TP Rs 577: Analysts

Tata Power Company Ltd shares are in news and for all positive reasons. Morgan Stanley is bullish on the stock and sought to double upgrade it to overweight and also upgraded the target price from Rs 337 to Rs 577 now. Meanwhile, Motilal Oswal too recommended buy call to Tata Power shares as the analysts set a target price of Rs 530 per share. Last trading price of Tata Power shares on BSE stood at Rs 466.70 apiece with decline of 1.06% as on October 4, 2024. The crorepati stock's market cap stood at Rs 1,49,126.50 crore. Tata Power shares surged over 700% in last 5-years thus giving big boost to investors' wealth.

The stock has been offering dividends since 2001. Recently, Tata Power on September 30, 2024 inked MoU with Rajasthan Government for an investment plan of ~ Rs 1.2 lakh crores in Power Distribution, Transmission, and Renewables. Check key details below:

Tata Power Shares Performance: Last trading price of Tata Power Co Ltd shares on BSE is Rs 466.70 per share. The 52-week high price of Tata Power shares on BSE is Rs 494.85 apiece and 52-week low price is Rs 230.75 per share. Tata Power shares slipped 3.79% in last 1-week, gained 41% year-to-date and soared 82% in last 1-year.
Tata Power Company Ltd Dividend History: Tata Power Company Ltd. recommended 25 dividends since July 9, 2001. In last 1-year, Tata Power Company Ltd. recommended an equity dividend amounting to Rs 2.00 per share. At the current share price of Rs 466.70, Tata Power Company offers a dividend yield of 0.43%.

Shareholding: FII/FPI have increased holdings from 9.44% to 9.50% in Jun 2024 qtr. Number of FII/FPI investors increased from 564 to 623 in Jun 2024 qtr. Mutual Funds have increased holdings from 5.59% to 7.24% in Jun 2024 qtr. Number of MF schemes increased from 41 to 42 in Jun 2024 qtr. Institutional Investors have increased holdings from 25.25% to 25.33% in Jun 2024 qtr. LIC stake in Tata Power stood at 5.78 with 184,533,501 shares of the company.

Tata Power Turns Rs 58 Lakh Investment To More Than Rs 1 Crore In 3-Years: Tata Power Company share was priced Rs 175.9 per share as on October 6, 2021. If you had bought 55,000 shares of the company at this price, you would have got a total corpus of Rs 10080573 crore with the net profit of Rs 3824323 (including dividend income of Rs 7.30 of 4 years). We have also included dividend of every year that the company offered in this time span. Tata Power declared Rs 2 per share dividend this year, offered Rs 2.00 per share dividend in 2023, Rs 1.75 per share dividend in 2022, and Rs 1.55 per share dividend in 2021.

Tata Power shares offered stellar returns of 165.32% from October 6, 2021 (share price was Rs 175.9) to October 6, 2024 (share price is Rs 466.70).

Should You Buy Tata Power Company Share? According to Morgan Stanley, Tata Power is uniquely positioned in the present cycle with large merchant capacity, a steady growth in core business, and a pickup in renewable growth. "The renewable energy platform could see growth surprises, driven by rising distribution of RPO obligations and an evolving C&I market," said the analyst.

Meanwhile, Motilal Oswal spoke about the broader trends in Indian power sector, assessing an investment opportunity of Rs 40 lakh crore over the next decade. It includes Rs 34 lakh crore in firm capital expenditure and Rs 8 lakh crore in optionality, with generation, transmission, and smart metering accounting for 86%, 10%, and 4% of this investment.

Tata Power Stock Split History: Tata Power Company split the face value of its shares once since September 26, 2011. Tata Power Company last split the face value of its shares from Rs 10 to Re 1 in 2011.The share traded ex-split from September 26, 2011.

MoU With Rajasthan Govt: As per the BSE filing dated September 30, "Tata Power, one of India's largest integrated power company, today announced the signing of a landmark Memorandum of Understanding (MoU) with the Government of Rajasthan during the ongoing Rising Rajasthan Investor Meet in New Delhi with an investment plan of ~₹1.2 lakh crores. This ambitious 10-year plan aims to support Rajasthan's transformation into a power surplus state, providing 24/7 clean, affordable, and reliable power supply with investments in renewable energy projects and manufacturing, transmission, distribution, nuclear power, rooftop installations, and EV charging."

About: It is India's Largest Integrated Power Company, present across the entire power value chain of conventional & renewable energy, power services and next-generation customer solutions including solar rooftop and EV charging stations, as per its official website.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal and Morgan Stanley. 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 check with certified experts before taking any investment decision.