Tata Power Share Price Target/Prediction 2023, 2024, 2025, 2030
Tata Power: Company Overview
which is India’s largest integrated power generation company?
and which is the largest private Power Distribution Company?
of course, it is Tata Power.
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In this article, we will analyze the power of Tata Power,
And will also try to predict Tata Power Share Price Target/Prediction for 2022, 2023, 2024, 2025, and 2030.
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Tata Power first established its hydropower plant in 1915 at 40 MW which was subsequently upgraded to 72 MW.
Since that time, Tata Power is continually upgrading itself.
The company has over a century of expertise and experience in the power sector.
At present, Tata Power with its subsidiaries and joint ventures have a generation capacity of 13,735 MW of which 35% comes from clean energy sources.
Business Of Tata Power.
Business Of Tata Power.
Renewable energy
Tata Power is one of India’s most prominent renewable energy players.
It is dedicated to providing renewable energy to the country from the force of the wind to the power of the Sun.
Wind Energy
Wind Energy
Wind energy is one of the fastest-growing renewable energy sources worldwide.
At present, Tata Power has installed a 932 MW of wind power generation capacity.
Tata Power has installed its wind energy plant in Maharashtra, Gujarat, Tamil Nadu, Karnataka, Rajasthan, Andhra Pradesh, and Madhya Pradesh.
Tata Power is growing its wind energy capacity to meet the big demand of electricity.
Recently Tata Power subsidiary TPREL has commissioner 21 MW Vagarai wind farm in Tamilnadu, 100 MW in Nimbagallu Andhra Pradesh.
| SL NO. | WIND FARM | CAPACITY | STATE |
| 1 | PRATAPGARH | 126 MW | RAJASTHAN |
| 2 | NIMBAGALLU | 100 MW | ANDHRA PRADESH |
| 3 | POOLAVADI | 99 | TAMILNADU |
| 4 | KHANDA | 50.4 | MAHARASHTRA |
| 5 | SAMANA | 50.4 | GUJARAT |
SOLAR POWER
SOLAR POWER
Tata Power has a strong portfolio of 2688 MW solar generation capacity.
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It is producing more than 7 GW of solar energy by ground Mount utility-scale, over 750 MW of solar energy by rooftop, and installed over 55000 solar water pumps in India till date.
Tata Power aims to develop 20 GW of solar and wind energy by 2027.
Conventional Source Of Energy
Tata Power also generates electricity by conventional methods.
Tata Power generates electricity through hydropower projects thermal Power projects and West heater recovery projects.
Transmission And Distribution
Tata Power is engaged in the supply of electricity to 12 million consumers in various cities of India.
Some of them are Delhi, Mumbai, Ajmer, and Odisha.
it manages a distribution network of more than 4 lac ckt KM.
Tata Power is totally dedicated to fulfilling the future demand for power.
That is why Tata Power is constantly introducing various power solutions to meet the demand of consumers.
Tata Power’s innovative power solution includes
Tata Power solar roof,
Tata Power EZ charging,
Tata Power EZ Home,
Tata Power Smart Energy Management,
You might have understood the company overview.
Now let’s deep dive into its share price target for the long term.
I know that the future is very unpredictable,
Really, no one can know the future.
if anyone could, he would be the wealthiest man on earth.
But we try to predict share price based on its recent or past earning capacity.
Financial Analysis Of Tata Power
Income statement Analysis
Tata Power Share Price Target/Prediction 2023, 2024, 2025, 2030.
Sales/Revenue – Average sales growth for the last 5 years is 10%.
In the last 3 years, every year sales growth is almost 14% and last year sales have been grown by 30.9%.
It seems that as we are going ahead revenue is growing at a good pace.
It shows that the company is very comfortable in growing its business and expanding its product portfolio.
Operating Profit – Margin Company has last 5 years average operating profit margin of 14.8%.
last 3 years average operating profit margin stands at 18%.
The operating profit percentage growth you are looking into the picture is the growth of operating profit year on year (YOY).
The company is growing its operating profit by 15% year on year.
Last 3 years operating profit growth is 33%.
I think it’s a good sign of healthy growth.
In all aspects, in recent years Tata Power has performed very well and has multiplied its sales and operating profit and has also increased its operating profit margin.
EBITDA Margin -Company is maintaining a healthy EBITDA Margin.
last 5 years EBITDA margin of Tata Power is almost 30% and 9 years of data on the EBITDA margin shows 25%.
It’s a healthy margin for considering a long-term investment.
But we are deprived of looking into the interest and depreciation burden by only analyzing the EBITDA margin.
Let’s explore…
How much Interest And Depreciation are Paid By Tata Power?
Tata Power has a heavy debt of 51,936 cr. on its balance sheet.
Therefore the company has to pay a good portion of its operating profit for interest expenses.
Tata Power is paying an average of 100% of its operating profit for interest expenses.
Sometimes it is paying more than it is earning in operating profit.
It shows that the operating profit of Tata power is eaten up by its interest expense.
It should be taken seriously, and the company should try to cope with its interest expense.
The cost of depreciation in the case of Tata Power is considerable.
The company is paying an average of 8% of its gross profit as depreciation expense.
Net Profit/Is Tata Power Profitable?
Sales of Tata Power is increasing year on year.
but due to heavy debt, it’s net profit disappeared.
After playing its interest and depreciation cost company is earning on average 5% on Its sales.
As you can watch in the video given below.
The sales are in increasing trend as well as very high but the operating profit and net profit is substantially low.
But did you think, what about its competitors?
let’s have a look…
As you can watch in the video, I have compared the net profit earned by Tata Power, Adani Power, and Adani green with a different color symbol.
This is the last 5 years of data ranging from 2018 to 2022, of the power generation companies.
Tata Power is showing regular income or net profit.
whereas its competitor, Adani power always shows a negative net profit.
Only in a recent 2 years company has shown a positive positive net profit.
Its next competitor Adani green, is also very far away from Tata Power.
Because consistency should be there in any company to invest in the long term.
But none of them show a consistent net profit like Tata Power.
Balance Sheet Analysis Of Tata Power.
Balance Sheet Analysis Of Tata Power.
Since the power sector is a capital-intensive business then debt is a common thing for the companies involved in this business.
In the case of Tata Power, it has a very heavy debt of 51936 cr in the last financial year of 2022.
But what about its competitor’s debt?
Adani Power- As you can observe a heavy debt in the balance sheet of Adani power.
in the recent two financial year company has decreased its debt by 5% and 7% respectively.
But still, the company has 48,744 cr as debt on its balance sheet.
Let’s move to another competitor…
Adani Green- Adani green shows consistent growth in its debt.
In 2021 company has a debt of 24,209 crores.
The company has increased its depth by 118%, now it is 52,832 crore.
On regular basis, Adani green has increased its debt.
Reserve- Tata Power has grown its reserve by an average of 11% year on year in the last 5 years.
In the last 9 years trends of the reserve, growth are an average of 8% per year.
Tata Power Share Price Target 2022
It is a candlestick chart of Tata Power on a weekly time frame.
Tata Power is showing strong support of 200 and resistance of 300.
you can say that 200 is a strong demand zone and 300 is a supply zone.
On a technical ground basis, I am not looking for the stock to cross the 300 level in 2022.
Because whenever stock touches it is 250, it will be retraced back.
300 will be another strong resistance where the stock will face huge sell orders.
It is a short-term target for Tata Power for 2022.
if you are buying Tata Power at the 200, your first target will be 250, and the second target will be 300 rupees.
If you are a swing trader or a very short-term investor please keep in mind these important levels.
| R1 | 250 | S1 | 190 |
| R2 | 280 | S2 | 210 |
| R3 | 300 | S3 | 250 |
Tata Power Share Price Target 2023
Tata Power has a strong portfolio of 2688 MW solar generation capacity.
It has also a target to grow its solar energy to 20 GW by 2027.
Since Tata Power is one of the biggest players in the solar energy sector, it will be a great investment opportunity in long term.
Because in the upcoming future renewable energy is the key to sustainability.
The share price will grow further.
Because more and more investors will look to invest in the stock.
And, Tata Power may touch the level of 400 to 450 in 2023.
| R1 | 360 | S1 | 300 |
| R2 | 400 | S2 | 350 |
| R3 | 460 | S3 | 400 |
Tata Power Share Price Target 2024
SALES- Tata power has some average sales growth of 3% in the last 9 years and 9% in the last 5 years.
last 3 years average sales growth is 13%. We can say that in the long term sales have gone with a very low pace.
If we observe total sales growth from 2013 to 2022 it is almost 33%.
if you look at the average net profit growth of last 9 years we get almost 4%.
last 3 years company’s net profit growth is 4.65%.
This all data sources the previous history of the sales and its net profit.
but the growth of any company depends upon its future earnings and its future earning capability.
Is there any possibility of a boom due in the power sector?
If the answer is yes then there are very high chance that the sales growth of the company will multiply and that will result in its tremendous net profit growth.
And I think that this boom is going to happen in the next 5 years and the power sector will see a new high.
the company’s share price will be directly affected by this boom and it will show greater returns.
You can expect double the price of the current market price in the year 2024.
suppose, if your buy Tata Power at 220 level your investment will double by 2024.
I think it’s a good return, for the short-term player.
| R1 | 500 | S1 | 450 |
| R2 | 580 | S2 | 500 |
| R3 | 600 | S3 | 550 |
Tata Power Share Price Target 2025
Our traditional sources of energy will exhaust one day and we will be left with only renewable sources of energy.
Considering the above fact Tata Power is focused on renewable sources of energy.
And this is the only thing that will create sustainability of energy and for the environment.
At present Tata Power is producing more than 7 GW of energy by using ground-mounted solar utility-scale, rooftop solar, and a solar pump.
Tata Power has an installed capacity of 932 MW of wind energy production.
In this way, Tata Power is growing its renewable sources of energy.
Tata Power is very kindly interested in expanding its business portfolio.
company is expanding its renewable energy production transmission and distribution portfolio.
It is also working on customer-centric businesses like rooftop solar, solar pumps, EV charging, microgrids, energy service, and Home automation.
These all things will create immense revenue growth and will be resulted in greater profit.
Since investor has a strong belief in the company, most of them will not sell the shares of the company from a long-term perspective.
it will create extra demand for the stock and the share price will see a new high.
We may conclude that the stock price target for 2025 should be between 600 to 700 rupees.
| R1 | 591 | S1 | 550 |
| R2 | 725 | S2 | 600 |
| R3 | 890 | S3 | 800 |
Tata Power Share Price Target 2030
Tata Power is more inclined toward carbon neutrality, to create sustainable products which will be affordable for customers.
company is also expanding its business towards energy transmission and distribution through its strong infrastructure development.
Tata Power is a Power distribution company providing reliable quality power supply to near about 12 million customers of Mumbai Delhi Ajmer and Odisha.
Tata Power is the largest private Power distribution company in India.
Being the largest private player in power distribution, customers have strong reliability in the products or business of the company.
Tata Power, Home automation, EV charging, and Energy services are other areas of development that are due.
Tata Power is the number 1 EV charging company in India.
Day by day electric vehicles is being sold. Taking it seriously Tata Power is installing more and more EV charging stations. In this regard, the company has installed more than 1000 EV charging stations and more than 5400 home chargers across 178 cities in India.
Keeping all these points in mind, the main conclude that Tata Power will grow at a robust speed.
if it happens, we may see a new high in 2030.
Tata Power may touch the level of 1000 to 1200.
| R1 | 960 | S1 | 900 |
| R2 | 1020 | S2 | 950 |
| R3 | 1161 | S3 | 1000 |
What is the challenge Tata Power will face?
The market share of electric vehicles in India is only one percent.
It will take time to grow its market share.
Electric vehicles are very expensive and most of the people of India cannot afford it.
The main component of an electric vehicle is the battery and it is very expensive.
People have the main concern about the battery if the price of the battery will be considerable,
People were more likely to purchase an electric vehicle.
Another major challenge is competition.
Tata Power will have to face strong competition in this sector.
Because more and more companies are comintog into the power generation sector.
Conclusion-
Tata Power is fundamentally a very sound Company.
Therefore it creates opportunities for long-term investing.
In this digital age, the public is more aware and has a lot of information.
But futures are unpredictable.
if everything will be right Tata Power will grow strongly.
I think the renewable sector is undervalued.
Because renewable energy is the future.
And the company which will face competition and goes ahead will be the leader in the renewable sector and it will make its investor billionaire.
This is from my side friends.
I will try to update this article on regular basis.
If we see any changes or any growth-oriented aspects of the company we will update them here.
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Disclaimer
investing in any stock or security carries a lot of risks.
You may lose your all hard earn money.
All the information provided here is not investing recommendation.
It is informational content and should not be considered as investing recommendation.
Please take advice from your financial advisor before investing in any stock or security.
Good article
Good analytics
Thank you