Tata Power share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about Tata Power share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned Tata Power share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
Tata power: Company profile
Tata power share price target 2022: Tata Power is a pioneer credited with steering the energy sector on technology, process, and platform. powering emerging technologies for smart customers, Tata power’s latest business integrated solutions, focusing on mobility and lifestyle, is poised for multi-fold growth.
Tata power together with its subsidiaries & joint entities has a power generating capacity of over 13,000 MW of which 32% of the power comes from clean energy sources. The company wants to be one of the top private players in each sector of the value chain including solar rooftop and value-added services.
Power value chain of tata power
- Renewable energy generation.
- Conventional energy generation.
- EV charging infrastructure.
- Solar rooftop.
Tata Power is gearing up to set up EV charging stations across India. Tata Power has already installed 540 charging stations in various cities, including Delhi, Mumbai, Bengaluru, Pune, Hyderabad, and other cities. The company has joined hands with MG motor India to deploy superfast chargers at select MG dealerships.
- Tata power has 12 million distribution consumers.
- 13,061 MW.
- 100 plus years of presence in the Indian power sector.
- 32% of the energy is clean energy.
- Tata power is India’s largest integrated power company.
- India #1 solar rooftop EPC company for 7 years in a row.
- Installed the world’s largest solar rooftop.
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- Georgia – Hydro project.
- Bhutan – Hydro project.
- Singapore – Logistics office.
- Indonesia – Coal mines.
- Zambia – Hydropower.
- South Africa – JV for power projects.
Share Holding Pattern
Tata power share price target 2022 by JP Morgan
JP Morgan said globally environment, social, and governance or ESG-positive businesses are trading at premium multiples, particularly EV charging plays where Tata power has made significant progress. However, there is no contribution at the profit and loss level yet – JP Morgan.
The brokerage has also revised the target price to Rupees 340 by march 2023.
”Given the large opportunity size, the stock seems to be pricing these new businesses in well ahead of execution”.
The brokerage said the revision in target price is because it has factored in the opportunity size. JP Margan estimates a 30% compounded in earnings per share in FY21-FY25.
”The steady improvement in operating cash flow is likely to fund the equity requirement for growth Capex along with potential asset monetization,” said JP Morgan.
Tata power share price target 2022 by Anand Rathi
Anandhi Rathi has a buy call on tata power with a target price of 342 rupees. The time period given by Anand Rathi is one year when tata power can reach the given target.
Anand Rathi report on Tata power
For the quarter ended 30-09-2021, the company reported a net sales of 6,374 crores, down from 8,070 crores to 6374 crores from the previous year. Net profit 921 crores, up from 148 crores in the previous year. Eps 2.88, up from 0.55 from the previous year.
Tata Power is India’s largest integrated power company across the power value chain. The net debt of the company is continuously decreasing which is a good sign for the company. Working capital management has helped to keep net debt in check.
Tata power share price target 2022 by Motilal Oswal
Motilal Oswal has recommended a buy rating on the stocks with a target price of 351 rupees in its research report.
Motilal Oswal report on Tata power
Tata power results reflect a better than expected performance from the Mundra-coal JV and a reduction in interest costs. PAT stood at Rs 4.3 billion and was significantly higher than estimations of Rs 3.6 billion.
Infusion from promoters has aided a debt reduction and the company is continuously reducing its debt.
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Tata power share price target 2022 by Edelweiss
Tata Power 2.0: Realigning business and perception, Tata power has unveiled its long-term ( FY25 ) business strategy focusing on
- Disentangling business operations from 95 to 40 entities.
- Prudent capital allocation.
- Balance sheet heft-sustainable D/E of 1.5x and debt/EBITDA of 3.5x
- Propelling revenue 2x and profit 3x.
moreover, the company is leveraging its brand value, the company is eyeing consumer-oriented business and planning to transition from B2G to B2C enterprise as it accentuates offerings in the solar rooftop, solar pumps, EC sharing, microgrids, among others.
Management FY25 target is to double revenue to Rs 600 billion, triple profit to Rs 36 billion, and 550bps accretion in RoE to 12% plus. To achieve this management is training focus on new growth avenues which are less capital intensive, and are also gaining traction in solar EPC & pumps, T&D, and renewable businesses
Tata Power share price target 2022 by HDFC Securities
HDFC securities maintain a buy rating on Tata power, factoring in the growth in EPC business, higher regulated CAPEX, debt reduction, and merger benefits.
HDFC securities report on Tata Power
Earnings boosted by deleveraging exercise: Consolated revenues grow by 53% YoY, 33% QoQ to Rs 101 billion, led by strong performance in solar EPC ( +380%) YoY and inclusion of Odisha business.
Net Debt reduction: Net debt for Tata Power fell to Rs 359. billion as of March 21 from Rs 435 billion YoY. accordingly, its net D/E declined to 1.4x in FY21 vs 2.0x YoY while net debt/EBITDA declined to 4.1x in FY21 vs 4.7x YoY.
Stellar performance in EPC: In Q4FY21, Tata power solar reported revenues of Rs 27.8 billion which is 380% more than the previous year, supported by strong execution. EPC EBITDA grew by 128.4% YoY to Rs 1.8 billion while PAT increased 95% YOY to Rs 1.4 billion from 700 million YoY. In FY21, the segment reported a revenue/PAT growth of 139%/70% YoY to Rs 51 billion/2.1 billion. The order book stands at Rs 87 billion which is executed over the next 12 to 18 months. Tata power targets to enhance its market share in the EPC segment from the current 16.5% to 20% over FY20 to FY25 and aim to maintain an order book of 3.5GW p.a.
Tata Power Share Price Target 2023
Tata Power recently rallied a lot, gave 197% returns to its investors in just 1 year, and rallied 90% in the last 6 months.
Building Future-Ready Solutions
In FY21, Tata Power took effective steps to deleverage its balance sheet. This strategy resulted in greater investor confidence in Tata Power performance and market capitalization increased by 214% from ₹10,496 crores in FY20 to ₹32,990 crores in FY21.
Furthermore, Tata Power raised ₹2,600 crores by way of issuing equity share capital on a preferential basis to Tata Sons Private Limited (“Tata Sons”) reinforcing their commitment to strengthening the Company’s financials by increasing their shareholding from 35.27% in FY20 to 45.21% in FY21. The completion of the sale of the South African assets, shipping assets as well as defense business and the consequent reduction in debt and a corresponding upgrade in credit ratings have enabled the Company to further reduce financing costs.
This has accelerated Tata Power’s ambitious plans to expand its business portfolio across renewables, transmission, and distribution, as well as customer-centric businesses of Solar Rooftops, Solar Pumps, Microgrids, EV charging, and Energy Services (ESCO), Home Automation, and Floating Solar, amongst others. Tata Power Company achieved a major strategic milestone by winning bids in the privatization of the Discoms in Odisha. This has expanded Tata Power’s operational footprint and increased its customer base in distribution to 12 million customers. By considering all these opportunities Tata Power has and the fundamentals and financials of the company. Tata Power share price target for 2023 is Rs 400.
|Tata Power Share Price Target 2023|
Tata Power Share Price Target 2024
Tata Power has a lot of opportunities in the EV segment, and Tata power is the only major company that is operating in EV charging stations and setting up EV charging stations across the country.
Tata Power in EV Charging
Tata Power has made a significant impact in developing the EV ecosystem and encouraging EV adoption in the country. Tata Power is committed to playing a key role along with other stakeholders in achieving the national goal of transition to electric mobility. Tata Power partnered with Tata Motors Limited, Morris Garages India Limited, and Jaguar Land Rover for developing EV charging infrastructure for their customers and dealers and installed 532 charging points across the country, including those for e-buses used by multiple state transport utilities.
During the year, Tata Power Company rolled out Version 2.0 of its software platform and mobile app that plays a crucial role in EV charging by helping customers in locating EV charging stations, charging EVs, and making bill payments online. Tata Power EV charging points are now present in 92 cities and various key highways under various business models and market segments. Tata Power aims to increase its presence both in terms of a greater number of charging stations and a larger geographical presence across the country.
Considering all these opportunities Tata Power has in the EV segment. Tata Power share price target for 2024 is Rs 480.
|Tata Power Share Price Target 2024|
Tata Power Share Price Target 2025
If you want to hold Tata Power for the long term, there are high chances that Tata Power can become a multi-bagger stock.
- Renewable Energy Generation.
- EV charging Infrastructure.
- Transmission & Distribution.
- Utility-Scale Solar EPC.
- Power Trading.
- Conventional Energy Generation.
Indian Power Sector
India’s power sector witnessed many successes in recent years, including energy access being extended to millions of households, the adoption of energy-efficient LED lighting by most households, and the expansion of renewable power sources, led by solar. However, the COVID-19 crisis has complicated the efforts to resolve other pressing issues that loom large across the power value chain. Among these are reliable power supply, the ailing financial health of Distribution Companies (Discoms), and rising pollution levels.
The year 2020 was marked by one of the biggest health challenges faced by the world. It impacted all segments of the economy, and the power sector was no exception. India’s demand for power fell significantly by 8.5% in the first half of FY21 but picked up pace in the second half of the fiscal, with the easing of lockdown measures. In fact, the country recorded the highest ever peak power utilization of 190 GW in FY21.
India’s growing urban population, revival in economic activities in the coming quarters after a sizable population gets vaccinated and its quest for affordable, clean, and reliable power provide a huge scope for continued growth in power demand. The power sector will have huge demand in the coming years. Tata Power share price target for 2025 is Rs 600.
|Tata Power Share Price Target 2025|
Tata Power Share Price Target 2030
Tata Power has major plans to scale up Consumer businesses such as rooftop solar, EV charging, solar pumps, microgrids, energy efficiency solutions, and home automation. It has collaborated with Original Equipment Manufacturers (OEMs) to roll out EV charging infrastructure and aims to expand its presence further in many cities of India. Tata Power has also developed a robust software platform for customers of EV charging and has released a mobile-based application (Tata Power EZCharge) towards the same effect.
This would enable Tata Power to offer value-added services to its customers. With the increase in EV adoption, Tata Power plans to cover the segments of home, workplace, and captive charging (including e-Bus charging) through different models and approaches. It is also actively evaluating opportunities in the electric 3-wheeler and 2-wheeler charging market.
Tata Power in Solar Rooftop, Solar Pumps & EPC Business
Enhancing the experience of over 30,000 customers through various digital assets such as:
- Solar calculator to save energy cost.
- Chatbot on websites and mobile applications.
- 3D visualization and sizing tool.
- Supporting 275 channel partners through Channel Partners’ (Sales) Incentive.
- Solar EPC solution for customers.
- Schemes during the COVID-19 pandemic to help grow their business.
- Changing the landscape of rural India through a dedicated focus on setting up around 1 million Solar Pumps by FY26.
Tata Power in EV Charging Infrastructure
- Installed 532 public charging points in over 92 cities, so far, on our way to create a thriving EV ecosystem for customers.
- Launched software platform and mobile application to help customers locate EV charging stations, charge EVs, and pay bills online.
- Aim to integrate 1 lakh EV charging stations by FY26.
- Invest in and promote the development of Charging Point Operators (CPOs) in the next four years.
By considering all the factors, and the opportunities for Tata power to grow its business in the future, Tata power share price target for 2030 is Rs 1,850.
|Tata Power Share Price Target 2030|
Tata Power Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|Tata Power share Price Target 2022||Rs 350|
|Tata Power Share Price Target 2023||Rs 400|
|Tata Power Share Price Target 2024||Rs 480|
|Tata Power Share Price Target 2025||Rs 600|
|Tata Power Share Price Target 2030||Rs 1,850|
Tata power is a good bet for long-term investment because India’s electricity demand will grow drastically in the coming years and Tata power will also benefit a lot from the evolution of the Ev segment.
India’s electricity demand was grown by 4.9% during the first half of this year. Currently, there are more than 70,000 petrol bunks in India if the EV segment picks up the pace we need more charging stations than petrol bunks. Currently, Tata Power has installed more than 900 charging stations. The company said by the end of this year, it hopes to more than double that number to 2,000 charging stations, and in five years, the company wants to establish 10,000 charging stations.
Frequently asked questions
Will Tata Power grow in future?
Yes, Tata power has a lot of growth opportunities to grow in the future. Tata power is now focusing on setting up charging stations all over India, As of now, Tata Power has installed more than 900 charging stations across India and the company is trying to double it in the coming years and company is aiming to set up more than 10,000 charging stations across India in the next five years.
Is Tata power good for long term?
One can hold Tata power for long-term investment. Due to the evolution of the EV segment, Tata power will benefit a lot from it and in the coming year’s renewable energy usage will drastically increase compared to coal, Tata Power is working hard to increase its renewable energy capacity. In FY21 the revenue from the EPC segment has grown by 380% which shows that the company is making big steps in the solar EPC segment.
Tata power share price target?
Tata power share price target for 2022 is Rs 350, Tata power share price target for 2023 is Rs 400, Tata power share price target for 2024 is Rs 480, Tata power share price target for 2025 is Rs 600, and Tata power share price target for 2030 is Rs 1,850.