Stock market today: Tata Power shares edged 3% higher in morning trade on Wednesday, February 5, following the announcement of the October-December quarter results.
The company reported a 10.35% rise in consolidated net profit for the December quarter at ₹1,187.54, compared to ₹1,076.12 crore posted in the corresponding quarter last year. Meanwhile, the revenue from operations grew by 5% year-on-year (YoY) to ₹15,391 crore from ₹14,651 crore in the same quarter a year ago.
Consolidated EBITDA during the quarter rose 7% to ₹3,481 crore, driven by solid contributions and operational efficiency across businesses.
Earnings Impact
Following the earnings announcement, Tata Power share price gained 2.99% to trade at ₹373 apiece on the BSE. The scrip opened at ₹369.85 as against the previous close of ₹362.15 and extended gains as the session progressed.
At 9.55 am, Tata Power was trading at ₹369.35, up 1.99% over its previous close.
Should you buy or sell Tata Power stock?
Analysts largely remained positive on Tata Power stock following its results.
Commenting on the technical outlook for Tata Power shares following its Q3 earnings presentation, Sumeet Bagadia, Executive Director at Choice Broking, said the stock looks positive on technical charts. He advised investors to hold it for the near term.
“The technical chart pattern shows that Tata Power’s share price is looking positive. The company’s shares have made a strong base at ₹350 and are facing a hurdle at the ₹400 mark. So, Tata Power shareholders are advised to hold the stock for the near-term target of ₹400, maintaining a stop loss at ₹350. Likewise, fresh investors can also initiate momentum buying at the current market price for the short-term target of ₹400. However, fresh investors also advised maintaining strict stop loss at ₹350 apiece,” Bagadia opined.
Meanwhile, Anshul Jain of Lakshmishree Investment and Securities said with strong fundamentals, the stock looks attractive above ₹370, with targets of ₹400 and ₹470 per share mark. “A compelling long-term story, Tata Power share remains a buy-and-hold candidate for investors seeking steady growth in the energy sector,” Jain added.
Domestic brokerage Motilal Oswal Financial Services also retained its ‘Buy’ call on the Tata Group stock, with a target price of ₹490/share.
“Tata Power’s (TPWR) 3QFY25 EBITDA came in 4% below our estimate but was up 38% on a YoY basis. Profitability at the PAT level was driven by other income, which came in higher than our estimates. While 3QFY25 adjusted PAT was above our expectations, overall, we trim our FY26-27 EPS by 7%/7%, mainly due to a slower-than-expected pace of commissioning in the RE generation business, the brokerage said.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
