Tata Power receives double upgrade from Morgan Stanley, stock reacts

Shares of Tata Power hit their record high on Friday after global brokerage Moran Stanley double upgraded its stance on the Tata Group firm to overweight. It also raised its price target by 23% to Rs 577 from Rs 337 earlier. Reacting to the development, Tata Power stock surged 3.98% to a record high of Rs 494.85 today against the previous close of Rs 475.90. Market cap of Tata Power stood at Rs 1.53 lakh crore mark on BSE. A total of 14.02 lakh shares of the firm changed hands amounting to a turnover of Rs 68.10 crore. Tata Power stock slipped to a 52-week low of Rs 230.75 on October 26, 2023. 

The power sector stock has gained 35% in 2024 and risen 68% in a year.

In terms of technicals, the relative strength index (RSI) of Tata Power stock stands at 72.6, signaling the stock is trading neither in the overbought zone. Tata Power shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Morgan Stanley said Tata Power is uniquely positioned in the current cycle with large merchant capacity, a steady growth in the core business, a pickup in renewable growth and lean balance sheet. "The renewable energy platform could see growth surprises, driven by rising distribution of RPO obligations and an evolving C&I market," it added. 

Recently, the Tata Group firm said it plans to invest about Rs 70,000 crore - Rs 75,000 crore ($8.95 billion) to expand its renewable energy capacity over the next five to six years.

In January this year, the Tata Group firm said it plans to significantly expand its capacity for renewable energy by 2027, with a target of 15 GW. The green energy expansion plan will span several Indian states and include a combination of wind and solar projects.