Tata Power shares down 14% from record high level; what's next: Rs 350 or Rs 450?

Tata Power Company Ltd shares slipped 3.09 per cent in Wednesday's trade to hit a low of Rs 371.25. At this price, the stock has declined 14.30 per cent from its record high of Rs 433.20, a level seen earlier this month on March 7.

Analysts suggested that support on the counter could be seen at Rs 355-350 levels. On the higher side, immediate resistance may be found at Rs 410 on daily charts.

One should consider buying Tata Power's stock around Rs 365 level for a near-term upside target of Rs 410, said Ravi Singh, SVP - Retail Research at Religare Broking. Keep stop loss placed at Rs 355, Singh added.

"The stock has potential to see Rs 450-500 levels over a period of next 9-12 months. Keep a strict stop loss at Rs 350. One should not miss this stock from the power space," Mitesh Panchal, a Sebi-registered analyst, told Business Today TV.

Tata Power's counter traded lower than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 41.54. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 79.62 against a price-to-book (P/B) value of 8.64. Earnings per share (EPS) stood at 4.77 with a return on equity of 10.86.

On BSE, around 6.43 lakh shares were last seen changing hands today. The figure was lower than the two-week average volume of 16.41 lakh shares. Turnover on the counter came at Rs 24.35 crore, commanding a market capitalisation (m-cap) of Rs 1,21,374.97 crore.

As of December 2023, promoters held a 46.86 per cent stake in Tata Group's power arm.