Tata Power shares grew up 4%, brokerages retain ‘buy’ rating after Q2 results

Shares of Tata Power surged over 4 percent following the release of its Q2FY25 results, with several brokerages reaffirming their ‘buy’ ratings.
Elara Securities said ‘buy’ while raising its target price on the stock from Rs 463 to Rs 518 and upgrading its rating from ‘accumulate’.
Other brokerages including Motilal Oswal Financial Services, JM Financial and Nomura also retained their ‘buy’ ratings.
Morgan Stanley also expressed optimism and maintained an ‘overweight’ rating on Tata Power and set a higher target price of Rs 577.
In contrast, Nuvama expressed a cautious outlook citing high valuations and retained its ‘reduce’ rating on the stock. Similarly, Jefferies maintained an ‘underperform’ rating on Tata Power with a lower target price of Rs 340. At 1:45 pm, Tata Power was trading 3.6 percent higher at Rs 442. On a year-to-date basis, the stock gained 35 percent, significantly outperforming the Nifty 50’s 11 per cent rise.
The company achieved EBITDA of Rs 3,808 crore, up 23 percent year-on-year. Additionally, Tata Power crossed 15 GW of installed generation capacity, including both conventional and renewable sources, with its clean energy portfolio now exceeding 12.9 GW (6.4 GW operational and 6.5 GW under construction).
In terms of capex, Tata Power spent around Rs 5,200 crore in Q2 FY25, taking its total expenditure for H1 FY25 to Rs 9,100 crore, while the full-year plan was around Rs 20,000 crore.
While revenue from generation and renewable energy declined 13 percent and 11 percent year-on-year to Rs 4,309 crore and Rs 1,913.5 crore, respectively, revenue from the transmission and distribution segment grew 8 percent to Rs 10,207 crore, benefiting from reduction in distribution losses in Odisha.