Tata Power shares turn weak in a year; time to buy, sell or hold?

Shares of Tata Power Company Ltd have corrected nearly 8% in a year. The Tata Group's multibagger stock has risen 994% in five years and gained 90% in two years. In the current session, Tata Power shares were trading on a flat note at Rs 404.15 on BSE. Market cap of the firm rose to Rs 1.29 lakh crore. The stock is neither oversold nor overbought on charts, signals its relative strength index (RSI), which stands at 58.2. In terms of price action, the stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day, 200 day moving averages.

Tata Power shares rose 90% in two years. In five years, the stock delivered multibagger returns of 993.77%.

The Tata Group stock touched a record high of Rs 494.85 on September 27, 2024 and fell to a 52 week low of Rs 326.25 on February 17, 2025. It has seen very high volatility in the last one year as its beta stands at 1.5. 

Here's a look at what brokerages said on the outlook of the stock.  

Way2Wealth Research has assigned a hold call to the Tata Power stock. 

The Tata Group firm reported impressive results in 4QFY25 due to several positive factors, including the profitability of the Mundra plant, the launch of a Solar Module and Cell manufacturing facility, and a robust order book pipeline. Additionally, the company is benefiting from structural tailwinds in areas like rooftop solar. As a leading player in the renewable energy sector, its emphasis on high-growth renewable power generation and transmission is likely to drive significant earnings growth. 

Furthermore, any positive movement regarding the company’s bidding plans for UP discom could serve as an important catalyst for reassessment. Given the performance enhancements observed across multiple areas in FY25, the brokerage sees this as a solid foundation for continued progress in FY26. 

Morgan Stanley has maintained an overweight call to the stock. It has hiked its price target to Rs 449 from Rs 425. The brokerage expects steady growth over the next few years despite some delays in renewable energy commissioning. The global brokerage expects the company's underlying net debt/EBITDA to peak at 3.6x, which provides a significant headroom for growth to the company. 

Mirae Asset Sharekhan has a buy call on the stock with a target of Rs 485. 

Tata Power is set to enhance its renewable energy capacities by 5.5 GW in the next two years. The company has a solid strategy for transitioning to clean energy and aims to achieve a 2.5 times increase in its PAT by FY2030E over FY2024.

"We maintain a Buy on Tata Power with an unchanged price target of Rs 485 on a SOTP basis," said the brokerage.