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Shares of Tata Power hit an all-time high on Thursday after a buy rating and price target upgrade from JM Financial. The brokerage set a new target of ₹350, representing potential upside of 24% over the next year. Tata Power stock closed up 7.7% for the day at ₹315.25, bringing year-to-date gains to 51%.
JM Financial highlighted Tata Power’s recalibration efforts across four areas: moving into high-margin group captive renewables, divesting non-core assets, expanding into hydro storage, and growing its transmission footprint. The brokerage forecasts strong growth ahead, with 15% revenue CAGR, 23% EBITDA CAGR, and 32% profit CAGR over fiscal years 2023-2026.
The note also pointed to an expected near-term resolution on the Mundra power plant issues. Tata Power’s market capitalization has now crossed ₹1 lakh crore, making it the 6th Tata group company to hit this milestone. The stock’s breakout performance reflects increasing optimism around Tata Power’s strategic repositioning and future growth potential across its business lines.