Tata Group Stock Jumps 15% From 1-Year Low; Buy This Tata-Led Energy Share?

Shares of integrated power company Tata Power are undergoing strong recovery after hitting their 52-week-low mark in February. Tata Power shares have increased nearly 11.55% in one month amid growing emphasis on renewable energy, decarbonisation and power infrastructure modernisation.

Tata Power Company shares were trading nearly a percent higher at Rs 378.25 apiece on BSE during Wednesday’s intraday trade. Its market capitalisation stood at Rs 1,20,863.72 crore.

Tata Power Recovered Significantly From 52-Week-Low

Tata Power shares have recovered nearly 15.8% ever since they tanked to 52-week-lowest mark of Rs 326.25 apiece on 17 February 2025. The company scrip touched its 52-week-highest mark of Rs 494.85 apiece on 27 September, 2024. Its stock value has declined nearly 3.61% year to date (YTD) and declined nearly 7.5% in one year, but has increased nearly 98.87% in two years.

Tata Power Shares: What Are Stock Brokerages Saying?

Tata Power Company is likely to benefit from India’s renewable energy transition and potential profit pool expansion. As the sector continues to flourish in India, the integrated manufacturer-developers will emerge as winners, noted IIFL Capital in its note released on 1 April.

The brokerage firm also shared a positive outlook for Tata Power, whos portfolio includes entire power value chain ranging from renewable energy generation to transmission and distribution.

“We back Tata Power (Buy; top pick) to emerge as the biggest beneficiary of our 'value capture’ thesis, estimating its PAT to expand at c.15% Cagr over FY24-28E. We also like Acme Solar’s risk-reward (Buy) & core strengths of NTPC Green (Add),” stated IIFL Capital in its note on Tuesday.

IIFL Capital fixed Tata Power with a 'Buy’ rating and a target price of Rs 435 per share as it highlighted the expansion of Tata Power’s energy portfolio and exports to other countries. The brokerage has indicated an upside of 15%.

With the onset of summer season, India will witness a massive spurt in demand for energy which may further raise the prospects of energy sector stocks. “We prefer Tata Power for its vertically integrated business model, allowing it to maximise value capture. Expect earnings to inflect in 1HFY26, as the company begins partially placing its domestically manufactured cell-modules in high-margin rooftop and DCR projects. Our SoTP-based TP of Rs435/sh implies FY27E EV/Ebitda of 13.8x – justified by its positioning as India’s leading integrated renewable developer,” noted IIFL Capital.

The company will also benefit from its newly commissioned 4.3GW solar cell-module manufacturing plant in boosting its profitability for the existing financial year. The solar cell module manufacturing plant will contribute nearly 20-28% profit after tax over FY26-28E, adjusting for 'at cost’ captive sales.

One of the major gamechanger in boosting Tata Power’s prospects was its Blackrock stake sale announcement in 2022, noted IIFL Capital which identified the development as a major driving force behind its improved ratings for Tata Powers for the first time. t “We believe company’s earnings is at an inflection and like its positioning, going into the next phase of energy transition,” added IIFL Capital.

Key Risks

Key risks in the growth prospects of Tata Capital includes solar cell oversupply and continued delays in execution of its projects. The Tata Group company reported a sequential decline in its net profit to Rs 977.92 crore in December quarter from Rs 1,008.61 crore in September quarter. The revenue from profit increased to Rs 5,731.00 crore in December from Rs 4,889.44 crore in September quarter.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.