Tata Power shares fell 23% from their highs. Should you buy/hold? | Daily News Byte

“With this, the company aims to grow revenue and PAT 3x and 4x from FY22’s level. ₹426 billion and ₹23 bn respectively, and simultaneously improve shareholder returns,” the broker said while maintaining its SoTP-based target price. ₹262 in Tata Power shares, but reduced the share price to ADD (from Buy) due to the share price run-up (12.3% over the last 6 months).

ICICI Securities believes that the long-term potential of the company’s business is good, especially its renewable and distribution business, and that the company is the best private player in the energy sector, with businesses across the value chain and backward linkages.

The management of Tata Power, in its annual analyst meeting, expressed confidence in the changing landscape of the power sector and its proper positioning to drive the new leg of sustainable growth as the core.

“In our view, flexibility, sustainability and consumer orientation are the three pillars of TPWR 2.0 and can be seen in its actions. The low profitability of new businesses is a change in the nature highlighted by sudden market changes – commodity / forex inflation. But, this can start to zoom when the situation is normal and it reaches a critical mass,” said broker Edelweiss.

Shares of Tata Power are trading about 23% below their highs ₹298 it hit in April this year in BSE. The stock is up about 83% over the course of the year. Tata Power is the largest power generation company in India providing power from its various plants located across India.

The views and recommendations stated above are those of individual analysts or brokerage firms, and not those of Mint.