Tata Power Shares: Shares of Tata Power on Wednesday gained 7.60 per cent (2.30 pm) to reach Rs 295 on BSE, which is its all-time high. The stock got support from buying with heavy volumes after improving business outlook in the weak market. In comparison, BSE is trading at 59,633 with a weakness of about 0.90 percent.
Strong return of 35 percent given in a month
The stock of Tata Group’s power company has given strong returns of 22 percent in the last five days and 35 percent in one month. On Tuesday, the stock moved above its previous high of Rs 269.70, which it touched in October, 2021. The trading volume in the stock almost doubled and as of 9.50 am on NSE and BSE, 69 million equity shares were traded.
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Why is the stock getting support?
Tata Power’s main focus is on renewables, transmission and distribution as well as solar rooftops, solar pumps, microgrids, electric vehicle (EV) charging, energy services, home automation, floating solar and other customer centric businesses. The company is a leader in the most renewable energy segments in the country. It is a leader in rooftop solar installations, solar water pumps and dominates the rapidly growing EV charging station market in India.
Profit up 74 per cent in December quarter
Tata Power already has partnerships with Apollo Tyres, HPCL, TVS Motors, Emma Stace & Trails to set up and enhance EV charging infrastructure.
In the October-December 2021 quarter, Tata Power reported a net profit of Rs 552 crore, registering a year-on-year growth of 74 per cent. The company was helped by good performance across all verticals.
JP Morgan in its recent report said, Tata Power’s growth is focused on new ESG-positive businesses such as solar/wind generation capacity, regulated electricity transmission/distribution and EV charging, solar micro grids, rooftop solar and solar EPC. Is. Regulated businesses provide stable earnings and good cash flow.
Support is at Rs 268
According to JP Morgan, the stock is trading at its lifetime high. The stock has support at Rs 268 level, followed by its 20 Day Moving Average (DMA) at Rs 240 level. Price to moving average action is also positive. The weekly chart also gives positive signals.