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On Thursday morning, Tata Power's stock price dropped by almost 3% after the company shared its financial results for the quarter that ended in September 2023. The price of Tata Power's shares decreased to ₹247.35 each on the Bombay Stock Exchange (BSE).
For the July to September quarter, Tata Power's profit increased by 8.79% compared to the same period last year, reaching ₹1,017.41 crore. The company's income for this quarter also went up by 9% compared to last year, amounting to ₹15,442 crore.
Despite this growth, the company's latest financial results didn't meet the expectations of market experts, who still have a cautious outlook on the stock.
Kotak Institutional Equities noted that while Tata Power's profit gained from better performance at the Mundra plant, its earnings were still affected by lower profits from coal. The firm expects that recent regulatory decisions and coal price changes will make the company's future earnings more stable, focusing on gains from its renewable energy business. They suggest selling the stock and have lowered their price target for Tata Power to ₹220 from ₹200.
Antique Stock Broking has observed Tata Power's investments in different areas, predicting a future focus on regulated business and renewable energy. They recommend buying the stock, setting a price target of ₹275. They warn, however, that falling coal prices and delays in certain projects could be risky.
CLSA, a foreign brokerage, also recommends selling Tata Power shares, with a target price of ₹205.
As of 10:10 am, the stock was trading on the BSE at a 2.14% lower price of ₹249.45 per share.
