Tata Power stock sheds multibagger tag in last year and 2022
The shares of Tata Power are trading under pressure, shedding their multibagger tag in the last year and in 2022. In the past two years, Tata Group stock delivered 218% returns. Since December 2020, the stock has gone from Rs 71.65 level to Rs 228. Tata Power shares increased in value by 328% in three years, making it one of the top performing scrips in the power sector during the period. The rally has slowed in the last year, with the stock trimming a majority of its gains. In a single year, the scrip has gained 3.67% and risen 3.67% in 2022.
The stock of Adani Power has gained 228 percent in a year and risen 222 percent since the beginning of the year. The Adani Group stock has gone up 445% during the three-year period.
Tata Power has a one-year beta of 1.2%, indicating high volatility during the period. It is currently trading higher than the 50 day, 20 day, 50 day and 100 day moving averages, but lower than 200 day moving averages. Tata Power has a high PE ratio of 28.17 against the industry PE of 10.46.
In the second quarter of the current fiscal, Tata Power reported an increase of 85 per cent in its consolidated net profit to Rs 935.18 crore on the back of higher revenue. The company's net profit was at Rs 505.66 crore in the quarter ended September 30, 2021.
The total income of the company went to 14,181. In Q 2 there was 07 crore from Rs 10,187. A year ago, 33 crore were made. The stock is trading at a current intraday high of Rs 230.25, rising 2.72% on the BSE. They opened at Rs 224 against the previous close of Rs 224.15 on the BSE. The firm's total of 5.89 lakh shares was changed hands in the afternoon, a turnover of 13.42 crore. The firm's market cap rose to 72,949 crore on BSE.
On April 7, 2022, the stock hit a 52 week high of Rs 298 and a 52 week low of Rs 190 on June 20, 2022 on the BSE.
Here is a look at what analysts said on the outlook of the stock, amid flat returns it has been delivering since the last year.
Manoj Dalmia, founder director at Proficient Equities, said Tata Power had seen a rally due to speculation around coal price fluctuations. A consolidated profit of Rs 535 crore was recorded last year, registering an on-year growth of 85 percent over a consolidated profit of Rs 506 crore. The stock is in a consolidation phase and can see a lot of momentum above Rs 300 with a target of Rs 350-400 in the long term. Abhijeet from Tips 2 trade said that despite steady growth in revenue and profitability, rising debt in Tata Power's balance sheet has ensured a subdued 2022 in terms of stock price returns. This stock is currently in a range of Rs 210 -- 235. Investors can buy near Rs 210 or wait for a daily close above 335 to buy targets of Rs 270- 295 in the coming weeks. Jitendra Upadhyay, senior equity research analyst at Bonanza Portfolio said it is believed that the long-term potential of the company's businesses is high as it is best placed to participate in the renewable energy capacity addition program of the Government of India and any privatization. If we talk about the role of Tata Power in the electric vehicle sector, the company is continuously installing power stations at different locations and already adding more than 1000 plus charging stations and aiming to multiply those by 5 times in the next 5 years. The company's future prospects look strong but they have already peaked for a long time, and that's why the company looks strong in recent times. It may be a good time to buy Tata Power on every dip for a long-term perspective.