Tata Power shares approach record high as firm to invest Rs 55,000 crore in Tamil Nadu

Shares of Tata Power Co Ltd approached their record high in early deals today after the firm disclosed its plans to invest Rs 55,000 crore in wind and solar power power generation in Tamil Nadu over the next 5-7 years. Tata Power shares hit a record high of Rs 349.65 on January 5, 2024.  In the current session, the stock rose to a high of Rs 345.15 against the previous close of Rs 340.70 on BSE. Tata Power stock fell to a 52 week low of Rs 182.45 on March 28, 2023. 

The Tata Group stock has gained 66.36% in a year. The stock has seen very less volatility in a year with a beta of 0.4.   

In terms of technicals, the relative strength index (RSI) of the stock stands at 69.6, signaling the stock is neither overbought nor oversold on technical charts. Tata Power shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 200 day moving averages.       

Total 3.69 lakh shares of the firm changed hands amounting to a turnover of Rs 12.58 crore on BSE. Market cap of Tata Power rose to Rs 1.09 lakh crore.       

 "We are looking at investing Rs 70,000 crore for 10 GW of power across wind and solar over a 

period of 5-7 years," Tata Power MD & CEO Praveer Sinha told Business Today on the sidelines of the Global Investors Meet 2024 on Sunday.

Sinha said that the sum includes investment of Rs 15,000 crore which have already been committed to operational as well as under-construction projects in South and Central Tamil Nadu.  Hence, the net new investments are around Rs 55,000 crore which will be announced officially on the second day of summit on Monday. 

The firm has plans to achieve 70% clean and green energy production by 2030, and 100% by 2040. Currently, the green energy share is under 40%.

Also read: Cochin Shiyard, SJVN & Poonawalla Fincorp: What Ashish Chaturmohta of JM Financial says on these stocks

 

Also read: Stock recommendations by market analysts for January 8, 2024: Jindal Saw, CDSL and REC