The market capitalization of Tata Power has crossed the Rs 1 lakh crore mark on Thursday. It has become the sixth company of Tata Group which has achieved this position. The company’s shares reached a record high on Thursday with a rise of about 10%. The market cap of Tata Power is Rs 1.04 lakh crore.
The reason behind the rise in Tata Power is that JM Financial Limited has bought the company from hold rating. The brokerage has increased the target price for the company from Rs 230 to Rs 350. According to the brokerage note, there is a possibility of 24% increase in it during the next 12 months.
Why did JM Financial increase its rating?
JM Financial has upgraded the shares of Tata Power in view of the possible resolution of the Mundra case, expansion of transmission outside distribution, entry in the renewable sector. JM Financial is estimating compound annual growth of 32% in profit after tax, 15% in revenue and 23% in Ebitda.
Shares of Tata Power today closed at Rs 326.6 with a rise of 11.03% or 32.45 points. From January 1 till today, it has seen a growth of 53.44%. Its total traded volume during the day was 10 times the 30-day average. Relative Strength Index was 84.
10 out of 20 analysts tracking Tata Power have a buy rating on the stock. Three advised to hold and seven advised to sell.
