Tata Power hits fresh 52-week high, up 15% in today's trade; check factors driving this Tata stock
Tata Group shares have been on a roll for the past couple of weeks. Majority of Tata stocks have gained in the range of 25 to 50 per cent in the recent run up
Tata Group shares have been on a roll for the past couple of weeks. Majority of Tata stocks have gained in the range of 25 to 50 per cent in the recent run up. Tata-Air India deal and Tata-TPG deal remain the major catalysts, pushing these shares to new highs.
Similarly, Tata Power stocks have been also on a dream run. Tata Power shares shot to a new 52-week high of Rs 264.55 on the back of spurt in volumes and the bull run witnessed by the equity benchmark indices Nifty50 and S&P BSE Sensex.
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At around 2 pm on Monday, Tata Power stocks rose above 15 per cent and was trading at Rs 255.95, up Rs 33.50 in intraday trade on the BSE on Monday.
Other factors pushing this share to new highs on regular basis are:
*Mundra plant resumes power supply in 2 states
*Punjab and Gujarat to buy power at actual price from company
*Gujarat will be supplied 1800 MW power for 4 weeks at the price of 4.5/unit
*Punjab will be supplied 500 MW power for 1 week at the price of 5.5/unit
*3 more states may soon start buying electricity from Mundra at actual price
*Supply at new prices will boost company's profits
Besides, immense value and opportunity in renewable business are contributing to the stock’s performance.
In fact, Tata Power is the country's largest renewable power company with renewable power capacity of 2.6 GW in 11 states. The company plans to take its renewable production to massive 15 GW by 2025. Renewable Power currently accounts for 30% of total capacity, while the target is to take renewable capacity to 80% by FY30. It is also expected that Solar EPC target would increase the business by 10 times. Another area where this stock takes the edge is with Tata's plan to capture EV segment strongly. The company, which is market leader in Solar EPC, Pumps and Panels, aims to install 10,000 EV charging points across the country.
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