On February 5, Tata Power’s stock increased 3% on releasing the company’s Q3 net profit, which increased by 10.35% to ₹1,187.54 crore. Analysts were optimistic about the stock’s future performance despite revenue growing 5% yearly to ₹15,391 crore.
Earnings Impact:
On Wednesday, February 5, Tata Power’s stock increased by 3% in early trading after the results of the October-December quarter were revealed.
Compared to the ₹1,076.12 crore reported in the same quarter the previous year, the company’s December quarter consolidated net prosed by 10.35% to ₹1,187.54. In the meantime, operating revenue increased from ₹14,651 crore in the same quarter last year to ₹15,391 crore, a 5% YoY increase.
Due to substantial contributions and operational effectiveness across all businesses, consolidated EBITDA increased by 7% to ₹3,481 crore during the quarter.
The price of Tata Power’s shares increased 2.99% to ₹373 per share on the BSE after the earnings announcement. In contrast to the previous close of ₹362.15, the scrip began at ₹369.85 and climbed as the session continued. Tata Power was up 1.99% from closing at ₹369.35 at 9:55 a.m.
After its earnings, analysts were generally still optimistic about Tata Power’s shares. Sumeet Bagadia, Executive Director at Choice Broking, commented on the technical outlook for Tata Power shares after the company’s Q3 results presentation, saying the stock appears to be in good shape on technical charts. He suggested that investors hang onto it for the foreseeable future.
According to the technical chart pattern, Tata Power’s share price is rising. After establishing a solid foundation of around ₹350, the company’s shares are now confronting a barrier of ₹400. Therefore, it is recommended that Tata Power stockholders hold onto their shares with a stop loss of around ₹350 to reach the short-term goal of ₹400. For the short-term goal of ₹400, new investors can also start momentum purchasing at the current market price. However, according to Bagadia, new investors also suggested keeping a stringent stop loss at ₹350 per share.
Meanwhile, Anshul Jain of Lakshmi Shree Investment and Securities stated that the stock is appealing above ₹370 due to its solid fundamentals, with goals of ₹400 and ₹470 per share. For investors looking for consistent growth in the energy sector, Tata Power shares remain a purchase-and-hold option due to their appealing long-term narrative, Jain continued.
At a target price of ₹490 per share, domestic brokerage Motilal Oswal Financial Services also maintained its ‘provide’ recommendation on the Tata Group shares.
Tata Power’s (TPWR) 3QFY25 EBITDA was up 38% year over year, yet it was 4% lower than our projection. Other income, which exceeded our forecasts, was the primary driver of profitability at the PAT level. Overall, we cut our FY26-27 EPS by 7%/7%, primarily because of a slower-than-expected rate of commissioning in the RE generating sector, even though the 3QFY25 adjusted PAT was above our estimates, the brokerage stated.
