Shares of Tata Power jumped more than 8 percent to hit their multi-year high of ₹295.90 in intraday trade on BSE on April 6.
The stock has been on an upward journey this year. In the current calendar year so far, the stock has gained 33 percent. Brokerages believe the stock can rise even further.
Brokerage firm Anand Rathi has a buy call on the stock with a target price of ₹316. The brokerage firm highlighted the company's recent projects which have brightened its outlook.
On April 5, the company announced its wholly-owned subsidiary Tata Power Solar Systems Limited had commissioned a 160MW AC solar project at Jetstar, Rajasthan.
Besides, Tata Power has collaborated with Rustomjee Group, the leading real estate developer, to provide end-to-end EV charging solutions across all its residential and commercial projects in Mumbai Metropolitan Region (MMR), Anand Rathi pointed out.
Under this collaboration, Tata Power will install a dedicated charging infrastructure for residents of Rustomjee in Mumbai MMR. Customers can connect through the Tata Power EZ Charge mobile application for all services including remote vehicle charging monitoring & e-payments. The partnership will enable Rustomjee residents’ access to a uniform and ubiquitous EV charging experience.
Tata Power’s Singapore-based JV -- Resurgent Power Ventures has won the bid to acquire the stressed asset of South East UP Power Transmission Company (SEUPTCL) through its resolution process under the Insolvency and Bankruptcy Code (IBC).
Anand Rathi underscored Tata Power holds a 26 percent stake in the joint venture through its wholly-owned Singapore-based arm Tata Power International. The transaction is part of a stressed asset resolution process initiated by a resolution professional through a competitive bidding process (held earlier).
Tata Power’s 100 percent subsidiary Tata Power Renewable Energy has commissioned a 300 MW project in Dholera, Gujarat. It is India’s largest single-axis solar tracker system, Anand Rathi said.
"From the recent developments, we expect the company's performance to improve from current levels," said Anand Rathi.
The stock traded 7.5 percent higher at ₹294.10 on BSE at 1300 hours.
Market sentiment on the stock is ‘moderately positive’, according to a MintGenie poll and an average of 19 analysts has a ‘hold’ call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.