Tata Power shares surged 7% in fag-end trade; how strong is this upside?

Shares of Tata Power Company Ltd logged a decent uptick during Tuesday's late trading session. The stock jumped 6.96 per cent to hit a day high of Rs 446.95. It was last seen 6.58 per cent up at Rs 445.75. At this price, the scrip has gained 34.97 per cent year-to-date (YTD).

The Tata Group firm said it has commenced solar cell production at its 4.3 GW solar cell and module manufacturing plant in Tirunelveli, Tamil Nadu. The largest domestic single-location facility, which is equipped with advanced TOPCon and Mono Perc technology to enhance solar cell efficiency, is seen bolstering domestic manufacturing of cells and modules, adding to India's solar energy and net-zero goals.

TP Solar, a Tata Power Renewable Energy Limited (TPREL) subsidiary, started commercial production from the 2GW solar cell line at its facility. This milestone follows the successful production of solar modules earlier this year. TPREL is a subsidiary of Tata Power Company.

Tata Power said the solar cell production, currently at 2 GW capacity will enhance Tata Power's ability to meet the growing demand for high-quality, and domestically produced solar components, especially for large-scale capacity-addition projects.

"The plant is expected to ramp up production with the remaining 2 GW capacity to be added over the next 4-6 weeks, reaching peak production within the next few months," the company stated.

On technical setup, support on the counter could be seen in the Rs 435-430 zone. And, a decisive breach above Rs 445 is required for more upside.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 435 and resistance at Rs 445. A decisive close above Rs 445 level may trigger a further upside towards Rs 460. The expected trading range will be between Rs 425 and Rs 460 for the short term."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said the stock looked strong on daily charts. "One can buy at the current market price for an upside target of Rs 480. Keep stop loss placed at Rs 430 for this trade," Singh stated.

As of June 2024, promoters held a 46.86 per cent stake in the company.