Tata Power share price: After the March quarter results, shares of Tata Company – Tata Power Company Limited have been sluggish. During Thursday’s trading, the stock fell 3% to Rs 419.55. Meanwhile, global brokerage firm Goldman Sachs said it expects the stock to fall as much as 45% over the next 12 months. The brokerage has given a ‘Sell’ rating on Tata Power shares and a target price of ₹240 per share. Let us tell you that the stock has gained 75% in the last six months and more than 110% in the last 12 months.
CLSA target price
Another broking firm CLSA has also recommended ‘Sell’ on Tata Power with a target price of ₹297 per share. CLSA said the stock is valued at 35 times its fiscal 2025 earnings estimate. CLSA said the quality of the company’s results remains challenging, with a one-off dividend supporting after-tax profits.
Of the 21 analysts covering Tata Power, eight have a ‘buy’ rating. Whereas, three have advised to ‘Hold’. Apart from this, 10 other analysts have given a ‘sell’ advice on the stock. The consensus among analysts suggests that the stock could fall 20% from current levels.
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How were the March quarter results?
The Tata group company reported an 11% year-on-year rise in profit in the March quarter, at Rs. 1046 crores. While in the same quarter last year it was Rs. 939 crores. In the quarter ended March 31, the company’s revenue rose 27% to Rs. 15,846.50 crores. Board of Directors of Tata Power Rs. 1 has recommended a final dividend of Rs 2 per equity (200 per cent) of face value shares. The company has fixed July 4, 2024 as the record date for payment of dividend.