Tata Power shares near day high; Vaishali Parekh advises to buy, here is the reason | Daily News Byte

At around 2.39 pm, on the BSE, Tata Power shares were trading at ₹222.50 per 1.7%. The stock is near the high of the day ₹223 in exchange. Overall, the upside is about 1.92% so far. The market value of the company is over ₹71,064 billion.

According to BSE data, Tata Power’s earnings per share are at ₹10.92, while the return on equity (ROE) is around 29.09%, and its price-to-equity ratio is 5.83x. The company has a 52-week high ₹298 items.

from its lowest level in 1 year ₹190 apiece on BSE which was recorded on June 20, 2022, Tata Power stock has advanced more than 17% year to date.

In her mid-term selection note, Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “The stock after a short correction has reached the trend support zone of 215 levels and has witnessed a pullback to the inner channel pattern. Daily chart to improve the bias and expect further increase in the coming days.”

She emphasized that with the recent movement at the important 50EMA level of 225, the trend will strengthen further to expect the target of 240-244 in the coming days.

With the risk-reward ratio being favorable, therefore, Vaishali recommends buying a position in this stock for an upside target of 244 maintaining a stop loss of 214.

That being said, Tata Power stock has the potential to rise 9.95% in the medium term.

During Q2FY23, the company recorded a growth in consolidated net profit of 85%. ₹935.18 crore on the back of higher revenue, compared to the profit of ₹505.66 crore in the corresponding quarter of the previous fiscal. Total revenue increased by 39% ₹14,181.07 crore in Q2FY23 from ₹10,187.33 crore last year. Also, EBITDA increased 18% yoy to ₹2,043 crore due to higher availability in Mundra and increased renewable generation capacity, and higher efficiency achieved in distribution business, especially in Odisha Discoms.

This Tata Group-backed company is one of India’s largest integrated energy companies, present across the entire energy value chain of traditional and renewable energy, energy services, and next-generation customer solutions including rooftop solar, EV charging stations, and home automation.

Disclaimer: The views and recommendations stated above are those of individual analysts or brokerage firms, not of Mint. We recommend that investors check with certified professionals before making any investment decisions.