Shares of Tata Group have given good returns to investors in the long term. One such stock is Tata Power, which has shown excellent growth in the long term. Shares of Tata Power are witnessing ups and downs after the June quarter results. The integrated net profit of this Tata electricity supplier company increased by 31 percent to Rs 1,189 crore in the April-June quarter of the current financial year.
The company said in a statement on Tuesday, ‘This is the 19th consecutive quarter when there has been a strong growth in net profit.’ According to the statement, the integrated net profit of Rs 1,189 crore, with a growth of 31 percent in the June quarter, is the highest ever jump in any quarter.
How was the company’s performance in the June quarter?
The company’s income in the quarter of June 2024 increased by 12 percent on an annual basis to a record Rs 16,810 crore. A year ago, in the April-June quarter of 2023-24, it was Rs 15,003 crore. Praveer Singha, CEO and Managing Director, Tata Power, said that all our businesses have grown profitably due to operational efficiency and sustained business momentum. He said that there is a plan for capital expenditure of Rs 20,000 crore in the current financial year.
Great jump in one year
The company has made a capital expenditure of Rs 4,000 crore in the first quarter of the financial year 2024-25. Shares of Tata Power have increased by 95 percent in a year from their 52-week low. Shares of Tata Power rose to an intraday high of Rs 445 today from 52-week low of Rs 228.10 on August 16, 2023. Its 52 week high price is Rs 470.85, which the company achieved on August 2.
LIC has this much stake
The market cap of Tata Power is Rs 1,36,936.28 crore. According to the new shareholding pattern, LIC holds 18,45,33,501 shares or 5.78% stake in Tata Power. At the same time, the Central Government/President of India holds 1,104 shares of Tata Power and the State Government holds 2,92,320 shares of the company.
How far can this stock go?
Choice Broking’s derivatives analyst Hardik Matalia said that it can be purchased at the support of Rs 435. In this the stop loss has been set at Rs 420. If the stock manages to sustain above the recent high of Rs 472, it can potentially move towards the target price of Rs 535 to Rs 550. CLSA has given underperform rating on Tata Power shares and has kept its target price at Rs 297. Nuvama Institutional has given a target price of Rs 346 on Tata Power shares.
(Note- Before investing in any share, please consult your market expert.)