Tata Power, acknowledged as one of India’s foremost integrated power companies, has positioned itself as a crucial player in the energy sector, greatly impacting the country’s power landscape. Being part of the prestigious Tata Group, the company enjoys a solid reputation for reliability and innovation. Over the years, Tata Power has evolved from a traditional power generation and distribution organization into a leader in renewable energy, a field that is increasingly important in the global shift towards sustainable energy solutions. A significant question pertains to the expected Tata Power Share Price Target 2030. In this analysis future stock value will analyze the different elements impacting Tata Power’s stock performance, assess its strategic initiatives, and highlight potential growth drivers that could affect its share price by the year 2030.
Tata Power: A Brief Summary
Tata Power, with over a century of operational experience, has established a prominent presence in power generation, transmission, distribution, and renewable energy sectors. The company’s diverse business portfolio includes coal-based power generation, renewable energy sources like solar and wind, infrastructure for electric vehicle (EV) charging, and energy storage solutions.
India is making significant progress in its efforts towards sustainability and the reduction of carbon emissions. In this regard, Tata Power has placed a strong emphasis on its renewable energy sector, establishing itself as a vital player in the country’s shift to green energy. The company intends to substantially increase its renewable energy capacity, with the goal of becoming one of the leading producers of renewable power in India.
Tata Power Share Price Target 2030
Tata Power’s focus on renewable energy, the development of electric vehicle infrastructure, and supportive government policies have prompted analysts to maintain an optimistic perspective on the company’s future. However, the stock’s performance will also be affected by several factors, such as the effectiveness of its operational strategies, competition from other energy suppliers, and the pace at which India shifts towards renewable energy sources.
Current Price ₹ 362/-
| Year | Bullish Scenario | Intermediate Situation | Bearish Scenario |
|---|---|---|---|
| 2026 | ₹ 600 – ₹ 750 | ₹ 550 – ₹ 650 | ₹ 400 – ₹ 490 |
| 2030 | ₹ 1550 – ₹ 1750 | ₹ 1250 – ₹ 1450 | ₹ 1020 – ₹ 1200 |
- Bullish Scenario: Analysts adopting a cautious outlook on the stock have projected a target price between ₹600 and ₹750 by the year 2026. This forecast is grounded in expected moderate growth in the renewable energy sector, along with ongoing improvements in Tata Power’s financial results.
- Bearish Scenario: For analysts with a more positive outlook, particularly those who have faith in Tata Power’s initiatives in renewable energy and electric vehicle infrastructure, the share price could potentially increase to ₹400–₹490 by 2026, driven by substantial progress in clean energy and electric vehicle charging solutions.
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Company Essentials
- Market Cap : ₹ 1,16,933.45 Cr.
- Enterprise Value : 1,35,841.02 Cr.
- No. of Shares : 319.53 Cr.
- P/E : 37.49
- P/B : 6.89
- Face Value : ₹ 1
- Div. Yield : 0.55 %
- Book Value (TTM) : ₹ 53.09
- Net Interest Income : ₹ 618.59 Cr.
- Cost To Income : ₹ 19,526.16 Cr.
- Promoter Holding : 46.86 %
- EPS (TTM) : ₹ 9.76
- CAR : 13.34 %
- ROE : 15.13 %
- ROCE : 13.46 %
- Profit Growth : -31.76%
Peer Comparison
| COMPANY | PRICERs. | MCAPCr. | P/B | P/E | EPSRs. | ROE% | ROCE% | P/S | EV/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| NTPC | 324.25 | 3,14,462.88 | 2.02 | 19.43 | 16.69 | 12.52 | 10.65 | 1.96 | 10.39 |
| Power Grid Corp | 302.30 | 2,81,203.76 | 3.08 | 18.63 | 16.23 | 18.12 | 12.83 | 6.63 | 9.96 |
| Adani Power | 528.75 | 2,03,935.65 | 4.98 | 23.03 | 22.96 | 55.41 | 33.04 | 5.20 | 13.52 |
| Adani Green Energy | 1,045 | 1,65,642.28 | 21.88 | 0 | -0.45 | -11.72 | 4.24 | 13.80 | 97.48 |
| Tata Power | 365.95 | 1,16,917.47 | 6.89 | 37.49 | 9.76 | 15.13 | 13.46 | 5.82 | 19.25 |
| NTPC Green Energy | 117.40 | 98,933.54 | 5.48 | 267.02 | 0.44 | 6.64 | 9.77 | 50.71 | 58.41 |
| Adani Energy Solut. | 813.35 | 97,706.32 | 5.05 | 219.58 | 3.70 | 5.60 | 6.94 | 64.39 | 110.61 |
| JSW Energy | 559.60 | 97,446.83 | 4.56 | 86.04 | 6.48 | 6.64 | 7.90 | 19.00 | 51.75 |
| NHPC | 79.04 | 79,375.87 | 2.05 | 27.42 | 2.88 | 10.30 | 7.71 | 9.44 | 18.69 |
| Torrent Power | 1,437.55 | 72,458.81 | 4.31 | 31.61 | 45.50 | 15.60 | 15.69 | 3.63 | 15.94 |
Quarterly Result (All Figures in Cr.)
| PARTICULARS | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 |
|---|---|---|---|---|---|
| Net Sales | 5,014.31 | 4,926.24 | 4,960.57 | 5,774.12 | 4,889.44 |
| Total Expenditure | 3,912.66 | 3,892.62 | 4,033.98 | 4,740.60 | 3,683.95 |
| Operating Profit | 1,101.65 | 1,033.62 | 926.59 | 1,033.52 | 1,205.49 |
| Other Income | 234.42 | 469.26 | 705.28 | 764.97 | 808.15 |
| Interest | 587.60 | 533.32 | 538.77 | 548.78 | 525.49 |
| Depreciation | 286.65 | 284.32 | 327.61 | 297.87 | 292.82 |
| Exceptional Items | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 461.82 | 685.24 | 765.49 | 951.84 | 1,195.33 |
| Tax | 51.56 | 158.16 | -80.62 | 214.80 | 186.72 |
| Profit After Tax | 410.26 | 527.08 | 846.11 | 737.04 | 1,008.61 |
| Adjusted EPS (Rs) | 1.28 | 1.65 | 2.65 | 2.31 | 3.16 |
Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)
| PARTICULARS | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Net Sales | 7,726.39 | 13,169.48 | 11,107.93 | 17,727.78 | 20,093.36 |
| Total Expenditure | 4,804.79 | 10,447.51 | 9,571.30 | 16,125.10 | 16,192.73 |
| Operating Profit | 2,921.60 | 2,721.97 | 1,536.63 | 1,602.68 | 3,900.63 |
| Other Income | 582.81 | 1,260.19 | 2,997.88 | 4,094.09 | 1,852.39 |
| Interest | 1,510.38 | 2,496.68 | 2,188.94 | 2,226.60 | 2,257.45 |
| Depreciation | 685.75 | 1,234.70 | 1,134.23 | 1,167.47 | 1,188.46 |
| Exceptional Items | -957.75 | 190.33 | 1,546.46 | 1,808.27 | 203.99 |
| Profit Before Tax | 350.53 | 441.11 | 2,757.80 | 4,110.97 | 2,511.10 |
| Provision for Tax | -207.82 | 101.40 | -492.96 | 843.07 | 281.24 |
| Net Profit | 148.12 | 293.52 | 2,782.93 | 3,267.90 | 2,229.86 |
| Adjusted EPS (Rs.) | 2.06 | 1.06 | 10.17 | 10.23 | 6.98 |
Balance Sheet (All Figures are in Crores.)
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Equity and Liabilities | |||||
| Share Capital | 270.50 | 319.56 | 319.56 | 319.56 | 319.56 |
| Total Reserves | 13,491.47 | 8,058.51 | 10,560.24 | 13,380.03 | 15,468.10 |
| Borrowings | 11,325.33 | 18,083.06 | 18,087.97 | 11,272.30 | 13,373.21 |
| Other N/C liabilities | 942.68 | 3,549.89 | 3,349.33 | 4,632.06 | 5,016.24 |
| Current liabilities | 10,550.18 | 14,331.06 | 14,472.74 | 18,455.20 | 16,198.28 |
| Total Liabilities | 37,616.48 | 44,455.64 | 46,903.40 | 48,172.71 | 50,488.95 |
| Assets | |||||
| Net Block | 8,036.29 | 24,494.32 | 23,745.96 | 23,722.05 | 23,542.27 |
| Capital WIP | 402.87 | 322.43 | 965.15 | 1,272.56 | 1,798.53 |
| Intangible WIP | 0 | 0 | 0 | 0 | 0 |
| Investments | 21,327.20 | 9,961.60 | 10,711.38 | 12,064.55 | 13,013.80 |
| Loans & Advances | 403.51 | 1,020.83 | 1,070.68 | 863.03 | 1,420.35 |
| Other N/C Assets | 4,198.43 | 2,903.90 | 2,588.71 | 2,747.41 | 3,116.70 |
| Current Assets | 3,248.18 | 5,752.56 | 7,821.52 | 7,503.11 | 7,597.30 |
| Total Assets | 37,616.48 | 44,455.64 | 46,903.40 | 48,172.71 | 50,488.95 |
Cash Flows (All Figures are in Crores.)
| PARTICULARS | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |||
|---|---|---|---|---|---|---|---|---|
| Profit from operations | -92.11 | 221.27 | 2,289.97 | 4,110.97 | 2,511.10 | |||
| Adjustment | 1,796.48 | 2,803.88 | -515.71 | -1,344.92 | 1,655.06 | |||
| Changes in Assets & Liabilities | 678.83 | 388.75 | 25.89 | -2,139.53 | 1,542.69 | |||
| Tax Paid | -74.40 | -79.89 | -116.40 | -126.47 | 172.64 | |||
| Operating Cash Flow | 2,308.80 | 3,334.01 | 1,683.75 | 500.05 | 5,881.49 | |||
| Investing Cash Flow | -470.99 | -1,174.10 | 1,587.08 | 5,124.06 | -92.11 | |||
| Financing Cash Flow | -1,752.58 | -2,618.40 | -3,634.98 | -5,349.62 | -5,464.60 | |||
| Net Cash Flow | 85.23 | -458.49 | -364.15 | 274.49 | 324.78 |
Corporate Actions (Dividend)
| EX DATE | RECORD DATE | DIVIDEND% | AmountRs. | TYPE |
|---|---|---|---|---|
| 04 Jul 2024 | 04 Jul 2024 | 200 | 2 | Final |
| 07 Jun 2023 | 08 Jun 2023 | 200 | 2 | Final |
| 15 Jun 2022 | 17 Jun 2022 | 175 | 1.75 | Final |
| 17 Jun 2021 | 19 Jun 2021 | 155 | 1.55 | Final |
| 14 Jul 2020 | 16 Jul 2020 | 155 | 1.55 | Final |
Shareholding Pattern
| Summary | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Sep 2022 | Jun 2022 | Mar 2022 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% | 46.9% |
| FII | 9.5% | 9.2% | 9.5% | 9.4% | 9.9% | 10% | 9.8% | 9.5% | 9.6% | 10.3% | 10.1% | 10.8% |
| DII | 16.1% | 17.0% | 15.8% | 15.8% | 16.4% | 16.0% | 14.9% | 14.5% | 14.7% | 14.5% | 15.0% | 16.2% |
| Public | 27.7% | 27.0% | 27.8% | 27.9% | 26.9% | 27.1% | 28.5% | 29.2% | 28.9% | 28.3% | 28.0% | 26.1% |
“The financial figures mentioned in this analysis are derived from Ticker by Finology for accuracy and reliability.”
Key Elements Affecting Tata Power Share Price Target 2030.
Several factors are anticipated to impact the future direction of Tata Power and its share price in the years ahead. The following are significant elements that could influence its performance and stock price target for 2026.
Growth in Renewable Energy
The renewable energy sector is expected to play a pivotal role in driving Tata Power’s growth in the coming years. The Indian government has set an ambitious target of achieving 500 GW of energy capacity from non-fossil fuel sources by 2030, with a particular focus on solar and wind energy. Tata Power has already invested considerable resources in solar and wind energy initiatives, and its growth in the renewable sector is projected to accelerate in the near future.
Tata Power has entered into several joint ventures and partnerships to expand its renewable energy capabilities. The company aspires to reach a renewable energy capacity of 20-25 GW by 2026, aligning with the growing need for sustainable energy alternatives.
- Impact on share price: A strong and continuous dedication to renewable energy has the potential to act as a major catalyst for growth. If Tata Power continues to expand its renewable energy offerings, it may witness a substantial increase in its stock price, driven by both domestic and international demand for sustainable energy solutions.
Government Initiatives to Promote Renewable Energy.
India’s commitment to renewable energy and the shift towards clean energy is clearly demonstrated by various government initiatives and policy frameworks. The National Action Plan on Climate Change, in particular, promotes the development of renewable energy and offers incentives for projects focused on solar, wind, and battery storage technologies.
Tata Power is well-placed to capitalize on government subsidies, incentives, and favorable policies aimed at accelerating the transition to renewable energy. Additionally, programs that promote the use of electric vehicles (EVs) and the establishment of EV charging infrastructure present further opportunities for the company’s expansion.
- Effect on stock price: With continuing government support, Tata Power’s investments in renewables and energy storage should create a stable platform for long-term growth, bringing up the stock price by 2026.
Expansion of Electric Vehicle (EV) Charging Infrastructure
Tata Power is actively promoting the development of electric vehicle (EV) charging infrastructure throughout India, which is critical as the country converts to electric mobility. Given India’s goal of electrifying 30% of its automobiles by 2030, the demand for EV charging stations is expected to expand dramatically.
Tata Power, acknowledged for its extensive distribution network and proficiency in power infrastructure, is well-equipped to lead the initiative for establishing electric vehicle charging stations across India. The company is actively deploying cutting-edge charging solutions at various locations and plans to significantly expand its charging network in the foreseeable future.
Impact on share price: If Tata Power successfully capitalizes on the rising demand for electric vehicle charging infrastructure, this sector could generate substantial revenue growth. The company’s ability to take a leading position in this emerging market will be a key factor influencing its share price performance by 2026.
Debt Management and Financial Stability
Tata Power has made significant strides in diversifying its energy portfolio; nonetheless, it still faces challenges related to debt and financial stability. Over the years, the company has implemented measures to reduce its debt load, focusing on improving its balance sheet and ensuring steady cash flow. Effective debt management and the preservation of financial stability are crucial for the company to facilitate its growth initiatives, particularly in the areas of renewable energy and electric vehicle infrastructure.
If Tata Power continues to focus on improving its financial stability, reducing its debt levels, and increasing its profitability, it is probable that investors will gain increased confidence in the company’s long-term prospects.
International Growth and Collaborative Alliances
Tata Power has made significant efforts to expand its operations beyond India. The company has established partnerships and collaborations with global organizations to enhance its capabilities in renewable energy. These partnerships may include joint ventures in emerging markets where the demand for clean energy is expected to rise.
Tata Power’s foray into global markets and its partnerships in countries abundant in renewable energy resources are likely to significantly contribute to growth in the years leading up to 2026.
Impact on share price: Tata Power may enhance its market value and attract a variety of investor groups through successful global expansion and strategic partnerships, which could provide new avenues for revenue generation.
Conclusion
Tata Power offers a compelling investment opportunity for long-term investors, especially those focused on renewable energy and clean technology. The firm’s dedication to enhancing its renewable energy capabilities, along with its strong involvement in electric vehicle charging infrastructure, establishes it as a key player in India’s energy transition.
The company faces challenges, such as managing debt and competing in the power sector; nevertheless, its efforts to innovate and expand into rapidly developing areas like renewable energy, electric vehicles, and energy storage are anticipated to support its growth trajectory.
Read more: Tata Power Share Price Target