Tata Power shares hit all-time high Friday after aggressive financial targets

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Tata Power shares hit all-time high Friday after aggressive financial targets
Credit: © Reuters.

MUMBAI - Shares of Tata Power (NS: TTPW ) soared to an all-time high of ₹335.8 on Friday, following the company's announcement of ambitious financial goals during an analyst meeting at Bhivpuri Hydro earlier in December. The energy giant's market capitalization surpassed ₹1 lakh crore, reflecting the market's positive reception to its strategic plans and growth prospects.

Tata Power has joined the ranks of other Tata Group companies with a market cap exceeding ₹1 lakh crore, illustrating investor confidence in its long-term vision. This milestone comes after JM Financial (NS: JMSH ) upgraded Tata Power's rating to 'Buy' and set a new price target of ₹350, indicating potential for further growth.

The company's strategic roadmap includes substantial capital investments totaling ₹60,000 crore from FY24 through FY27. These investments are aimed at doubling revenue and profit by FY27, with nearly half of this investment being funneled into renewable energy projects. This aligns with Tata Power's commitment to clean energy expansion, which currently represents about two-fifths of its total generation capacity.

In addition to its growth strategy, Tata Power has made significant operational improvements. The company successfully reduced Aggregate Technical & Commercial (AT&C) losses in Odisha and signed an agreement with the Maharashtra government to develop pumped hydro storage projects valued at approximately ₹13,000 crore.

Financially, Tata Power has demonstrated robust performance with September quarter profits reaching ₹1,017.41 crore, a 9% increase in revenues compared to the same period last year. The company has also maintained a consistent policy of rewarding shareholders with dividends, boasting a dividend yield of around 0.61% while providing reliable shareholder returns for over 20 years.

This surge in share price marks a notable recovery from March 28, 2023, when shares were trading at a low of ₹182.45. Since then, the stock has witnessed an impressive rally, reflecting the market's optimism about Tata Power's strategic initiatives and its focus on renewable energy investments.

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