When discussing wealth in India, two major names that come to mind are Ambani and Adani. However, when it comes to capturing the hearts of the people, Tata is always at the forefront. In this article, we will delve into Tata Power’s share price target for 2023, 2025, and up to 2050, along with its fundamentals and more. You can find all the information by scrolling down the page.
Tata Power has a vision of providing sustainable, affordable, and innovative energy solutions to empower a billion lives. The company is prioritizing sustainability, with a goal of achieving carbon and water neutrality. Given the company’s vision and the future of clean energy in India, it is fascinating to explore Tata Power’s target stock price. So, why wait? Let’s dive in!
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About Tata Power
Tata Power is the biggest integrated power company in India, with a total power generation capacity of 13,515 MW. Out of this, 8,860 MW is generated from thermal power, 880 MW from hydro power, 375 MW from waste heat recovery, 932 MW from wind power, and 2,468 MW from solar power.
Tata Power’s business model is mainly focused on power generation, transmission, and distribution. In recent times, the company has also been involved in developing electric vehicle infrastructure, such as charging stations. Tata Power and its subsidiaries use both conventional and renewable energy methods to produce power.
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Tata Power Stock Fundamental Analysis
Data As of 25th August 2023
Current Market Price | Rs. 246 |
Market Cap | Rs. 78,478 Crore |
P/E Ratio | 23.4 |
EPS | 10.99 |
52 Week High | Rs. 253 |
52 Week Low | Rs. 182 |
Book Value | Rs. 90.1 |
Dividend Yield | 0.81% |
ROCE | 12.4% |
ROE | 12.6% |
Promoters Holding | 46.86% |
FIIs Holding | 9.75% |
DIIs Holding | 14.59% |
Government Holding | 0.32% |
Public Holding | 28.48% |
Due to the high capital needed in this sector, power companies such as Tata Power have lower ROCE and ROE. Tata Power has a debt of Rs. 53,251 Crores, which is a cause for concern. However, the company has demonstrated good profit growth of 19.72% in the last three years. Additionally, Tata Power has maintained an effective average operating margin of 28.44% in the past five years.
Tata Power Share Price Target 2023 to 2050
The analysts at ShareKingz.com have provided a table below that mentions the Tata Power stock price targets for 2023 to 2050. The company’s renewable energy business is expected to experience rapid growth, which will be beneficial for the company.
Tata Power has a robust portfolio of renewable energy projects, and it is expected to add substantial capacity in the upcoming years. The government’s emphasis on clean energy and its favorable policies are anticipated to foster the growth of the company’s renewable energy business.
![tata power share price target 2023](https://sharekingz.com/wp-content/uploads/2023/05/tata-power-share-price-target-1024x1024.webp)
Year | Tata Power Stock Price Target |
2023 | Rs. 280 |
2024 | Rs. 345 |
2025 | Rs. 425 |
2026 | Rs. 531 |
2027 | Rs. 690 |
2028 | Rs. 828 |
2029 | Rs. 911 |
2030 | Rs. 1,093 |
2031 | Rs. 1,312 |
2032 | Rs. 1,639 |
2033 | Rs. 2,131 |
2034 | Rs. 2,451 |
2035 | Rs. 2,941 |
2036 | Rs. 3,529 |
2037 | Rs. 4,235 |
2038 | Rs. 5,082 |
2039 | Rs. 6,099 |
2040 | Rs. 7,318 |
2041 | Rs. 8,782 |
2042 | Rs. 10,363 |
2043 | Rs. 12,228 |
2044 | Rs. 14,429 |
2045 | Rs. 17,027 |
2046 | Rs. 20,092 |
2047 | Rs. 23,708 |
2048 | Rs. 27,975 |
2049 | Rs. 33,011 |
2050 | Rs. 38,953 |
The target price presented in the above-mentioned table is calculated without considering any potential adjustments in the share price, such as stock split or bonus.
Tata Power Share’s Growth Story
The main surge in Tata Power’s share price occurred when the company diversified into the electric vehicle charging infrastructure sector. To establish this, the company signed MOUs with various companies such as HPCL, BPCL, IGL, IOCL, among others. Tata Power has also partnered with other companies, including Tata Motors, MG Motors, and Jaguar Land Rover, to develop charging solutions.
According to a report by Avendus Capital, electric vehicles in India could represent a Rs. 500 billion opportunity by 2025, given the current and projected level of EV penetration. If this happens, Tata Power will benefit, leading to a corresponding increase in the share price.
In addition, renewable energy is another growth driver for Tata Power. Furthermore, the Indian government has set a target of achieving 500 GW of renewable energy generation capacity by 2030. This is a positive development for Tata Power, as the company is increasing its renewable energy generation capacity.
Tata Power Challenges & Risks
Although Tata Power has several advantages, it also faces tough competition from its peers like Adani Power, Adani Green, Adani Transmission, PowerGrid, Coal India, NTPC, and others.
Furthermore, while there are currently many positive assumptions surrounding the EV industry, there is a possibility that they could turn out to be negative. Therefore, it will be interesting to observe the future developments in the EV sector.
FAQs Related to Tata Power Share Price Target
Investing in stocks is a challenging task that requires extensive research and analysis. Investors often have numerous questions during this process, and the following are some of the most common ones. Our team has provided answers to these questions.
Is Tata Power Share Overvalued?
Based on its current PE ratio and the expected growth in the sector, Tata Power appears to be reasonably valued and not overvalued at the current price.
Is Tata Power share good for long term?
Based on the analysis and growth projections of the power industry, Tata Power possesses all the qualities of a potential long-term investment option.
What is the face value of Tata Power Stock?
Tata Power share’s face value is Rs. 1.
Final Statement
Tata Power has a long-term growth story. Therefore, to benefit from it, investors need to hold their positions for a considerable period and avoid getting impatient. If you found the analysis useful, please share it on social media to help others gain insights.
Note: We do not promote the buying or selling of any stocks. The information provided here is solely for educational and informational purposes. Kindly conduct your own research and seek advice from your financial advisor before investing.
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