TATA Power Limited is a major player in the Indian power industry, offering services for generating, transmitting, and distributing electricity across the country. The company has seen impressive growth, reflected in its strong stock performance. TATA Power has set a big goal to increase its capacity by 10GW over the next ten years, which is expected to boost its revenues and benefit shareholders. This article will explore the likelihood of TATA Power reaching its share price goals from 2024 to 2030 by looking at its financials, market trends, and growth potential.
Tata Power Q3 FY2024 Results: Summary and Key Points
- Tata Power’s Q3 net profit for FY23-24 grew by 2% to Rs 1,076.12 crore.
- Consolidated revenue increased by 6.2% to Rs 15,294.13 crore, with EBITDA rising 20% to Rs 3,060.55 crore.
- The growth is attributed to better realisation in core business segments, including generation, transmission, distribution, and renewables.
- Strong financial performance is credited to a healthy balance sheet, operational excellence, and synergies across business clusters.
- As of December 31, 2023, Tata Power’s renewables capacity is at 4,270 MW, with plans to exceed 10,000 MW in the next 12-24 months.
- The company aims for around 70% of capacity from non-fossil-based fuels by 2030, emphasizing a transition to green energy.
- CEO Praveer Sinha highlighted the company’s 17th consecutive profit growth quarter and readiness to capitalize on growing power demand with clean and green energy solutions.
Tata Powers’ Future Plan
Tata Power plans to expand into renewable energy, diversification into new business areas like EV charging, and financial growth, all aimed at strengthening its position in the energy sector and aligning with global trends towards sustainable energy solutions.
Tata Power’s plan includes several key initiatives aimed at expanding its renewable energy capacity and diversifying its business focus:
- Renewable Energy Capacity Expansion: Tata Power plans to spend Rs 13,000 crore on two major projects at Bhivpuri and Shirawta, near Pune. These projects are expected to add 2,800 MW of renewable capacity and are slated to be operational by 2027–28.
- Renewable Power Generation Goals: The company has set ambitious targets for its renewable power generation capacity, aiming for 15 GW by the financial year 2027 (FY27) and 20 GW by 2030.
- Pumped Hydro Storage Projects: Tata Power is exploring the potential of developing 9 GW of pumped hydro storage capacity using three additional water reserves.
- Diversification into EV Charging and T&D: The company is diversifying its business to include electric vehicle (EV) charging and transmission and distribution (T&D) opportunities. This move is part of its strategy to adapt to the changing energy landscape and emerging opportunities.
- Financial Growth Objectives: Tata Power aims to nearly double its revenue, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and Profit After Tax (PAT) by FY27 compared to FY24.
- Reduction of Non-Core Activities: The company plans to reduce the share of non-core activities to 10 percent by FY27, a significant decrease from 60 percent in FY23.
- Focus on Transmission and Pump Storage: The management of Tata Power is particularly optimistic about the growth prospects in the areas of transmission and pump storage.
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| When | Maximum Price | Minimum Price |
| June 2024 | 479.52 | 416.97 |
| July 2024 | 474.72 | 412.80 |
| August 2024 | 493.71 | 429.32 |
| September 2024 | 513.46 | 446.49 |
| October 2024 | 503.39 | 437.73 |
| November 2024 | 518.50 | 450.87 |
| December 2024 | 531.46 | 462.14 |
Tata Power, with a market cap of ₹1,41,729 Cr and a current price of ₹444 as of June 8, 2024, is projected to see share prices ranging from ₹416.97 to ₹531.46 by December 2024. The stock’s high/low is ₹464/216, with a P/E ratio of 40.3 and a book value of ₹101.
| When | Maximum Price | Minimum Price |
| January 2025 | 542.09 | 416.99 |
| February 2025 | 555.99 | 427.68 |
| March 2025 | 577.67 | 444.36 |
| April 2025 | 566.34 | 435.65 |
| May 2025 | 549.85 | 422.96 |
| June 2025 | 574.59 | 441.99 |
| July 2025 | 563.33 | 433.33 |
| August 2025 | 580.75 | 446.73 |
| September 2025 | 601.07 | 462.36 |
| October 2025 | 616.70 | 474.39 |
| November 2025 | 632.12 | 486.25 |
| December 2025 | 647.92 | 498.40 |
Tata Power’s share price in 2025 is expected to range between ₹416.99 in January and ₹647.92 by December, showing a significant upward trend throughout the year.
| When | Maximum Price | Minimum Price |
| January 2026 | 667.36 | 513.35 |
| February 2026 | 684.47 | 526.52 |
| March 2026 | 711.17 | 547.05 |
| April 2026 | 697.22 | 536.32 |
| May 2026 | 676.91 | 520.70 |
| June 2026 | 707.38 | 544.14 |
| July 2026 | 693.51 | 533.47 |
| August 2026 | 714.95 | 549.96 |
| September 2026 | 739.98 | 569.21 |
| October 2026 | 759.22 | 584.01 |
| November 2026 | 778.20 | 598.61 |
| December 2026 | 797.65 | 613.58 |
| When | Maximum Price | Minimum Price |
| January 2027 | 813.61 | 625.85 |
| February 2027 | 834.47 | 641.90 |
| March 2027 | 867.01 | 666.93 |
| April 2027 | 850.01 | 653.85 |
| May 2027 | 825.25 | 634.81 |
| June 2027 | 862.39 | 663.38 |
| July 2027 | 845.48 | 650.37 |
| August 2027 | 871.63 | 670.48 |
| September 2027 | 902.14 | 693.95 |
| October 2027 | 925.59 | 711.99 |
| November 2027 | 948.73 | 729.79 |
| December 2027 | 972.45 | 748.04 |
| When | Maximum Price | Minimum Price |
| January 2028 | 991.90 | 763.00 |
| February 2028 | 1,017.33 | 782.56 |
| March 2028 | 1,057.01 | 813.08 |
| April 2028 | 1,036.28 | 797.14 |
| May 2028 | 1,006.10 | 773.92 |
| June 2028 | 1,051.37 | 808.75 |
| July 2028 | 1,030.76 | 792.89 |
| August 2028 | 1,062.64 | 817.41 |
| September 2028 | 1,099.83 | 846.02 |
| October 2028 | 1,128.43 | 868.02 |
| November 2028 | 1,156.64 | 889.72 |
| December 2028 | 1,185.55 | 911.96 |
| When | Maximum Price | Minimum Price |
| January 2029 | 1,209.26 | 930.20 |
| February 2029 | 1,240.27 | 954.05 |
| March 2029 | 1,288.64 | 991.26 |
| April 2029 | 1,263.37 | 971.83 |
| May 2029 | 1,226.58 | 943.52 |
| June 2029 | 1,281.77 | 985.98 |
| July 2029 | 1,256.64 | 966.65 |
| August 2029 | 1,295.50 | 996.54 |
| September 2029 | 1,340.85 | 1,031.42 |
| October 2029 | 1,375.71 | 1,058.24 |
| November 2029 | 1,410.10 | 1,084.69 |
| December 2029 | 1,445.35 | 1,111.81 |
| When | Maximum Price | Minimum Price |
| January 2030 | 1,474.26 | 1,134.05 |
| February 2030 | 1,512.06 | 1,163.13 |
| March 2030 | 1,571.03 | 1,208.49 |
| April 2030 | 1,540.23 | 1,184.79 |
| May 2030 | 1,495.37 | 1,150.28 |
| June 2030 | 1,562.66 | 1,202.05 |
| July 2030 | 1,532.02 | 1,178.48 |
| August 2030 | 1,579.40 | 1,214.92 |
| September 2030 | 1,634.68 | 1,257.45 |
| October 2030 | 1,677.18 | 1,290.14 |
| November 2030 | 1,719.11 | 1,322.39 |
| December 2030 | 1,762.09 | 1,355.45 |
Tata Power Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 29,881 | 29,136 | 32,703 | 42,816 | 55,109 | 58,056 |
| Expenses + | 26,811 | 23,847 | 25,747 | 35,785 | 47,381 | 48,226 |
| Operating Profit | 3,070 | 5,289 | 6,956 | 7,031 | 7,728 | 9,830 |
| OPM % | 10% | 18% | 21% | 16% | 14% | 17% |
| Other Income + | 7,186 | 3,796 | 1,739 | 2,486 | 5,540 | 3,888 |
| Interest | 4,170 | 4,494 | 4,010 | 3,859 | 4,372 | 4,693 |
| Depreciation | 2,393 | 2,634 | 2,745 | 3,122 | 3,439 | 3,672 |
| Profit before tax | 3,693 | 1,958 | 1,941 | 2,535 | 5,457 | 5,353 |
| Tax % | 29% | 33% | 26% | 15% | 30% |
The company has demonstrated consistent growth in sales over the past five years, with a notable increase from ₹29,136 crores in March 2020 to ₹58,056 crores in the trailing twelve months (TTM) ending March 2023. Operating profit has also shown an upward trend, reaching ₹9,830 crores in the TTM period, indicating improved operational efficiency.
However, there has been a fluctuation in the operating profit margin (OPM %) over the years, with a peak of 21% in March 2021 and a subsequent decline to 17% in the TTM ending March 2023. This suggests some variability in cost management and revenue generation strategies.
Additionally, while other income has seen fluctuations, it remained relatively stable over the years, ranging from ₹1,739 crores in March 2021 to ₹5,540 crores in the TTM ending March 2023. Despite this, there has been an increase in interest expenses and depreciation, impacting the profit before tax, which stood at ₹5,353 crores in the TTM ending March 2023.
Overall, the financials reflect a company that has experienced growth in sales and operating profit but faces challenges related to maintaining operating profit margins and managing expenses such as interest and depreciation.
Is it worthwhile to invest in Tata Power for the long term?
According to the company, there is a promising future for Tata Power’s operations in the long term. Tata Power is one of the strongest power companies in India and is expected to do well.
You only need to open a Demat account and have your KYC validated online, and then you’ll be able to purchase Tata Power shares on any of the available platforms with ease like Zerodha, Groww, Paytm money, etc.
When can Tata Power reach 500INR?
As per our price prediction, Tata Power can reach 500 INR by September 2024.
Tata Power’s share price is expected to reach ATH of ₹647.92 by December 2025.
Tata Power’s share price is expected to reach a maximum of Rs.1,762.09 by December 2030.
Further Read:
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- TATA CONSULTANCY SERVICES SHARE PRICE TARGET 2024, 2025 to 2030: CAN TCS REACH 10000INR?
Conclusion
In conclusion, Tata Power Limited’s financial performance underscores its strong growth trajectory, with sales escalating from ₹29,881 crores in March 2019 to ₹58,056 crores in the trailing twelve months ending March 2023. This upward trend extends to operating profit, which surged to ₹9,830 crores in the same period, reflecting enhanced operational efficiency. Despite fluctuations in operating profit margin, ranging from 10% to 21% over the years, Tata Power remains resilient and strategically positioned for sustained growth. Challenges related to managing expenses like interest and depreciation are evident, yet the company’s strategic initiatives, aiming to double revenue and EBITDA by FY27, demonstrate proactive measures towards sustainable expansion. As Tata Power amplifies its renewable energy capacity, diversifies into new ventures such as EV charging, and capitalizes on emerging opportunities, it emerges as a compelling investment option, anchored by solid financial fundamentals and strategic foresight. Investors eyeing long-term value may find Tata Power an enticing prospect, leveraging its strong financial footing and strategic growth initiatives to navigate and thrive in the dynamic energy landscape.
Disclaimer: This article on Tata Power Share Price Target 2024 to 2030 is just for educational and informational purposes. In no way, it is any investment advice.
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