Tata Power becomes 6th Tata group firm to cross Rs 1 lakh-crore market cap
Tata Power jumped nearly 10% to the day’s high of Rs 322.25 on the NSE on Thursday following an upgrade by brokerage firm JM Financial. The rally ensured that the company’s market cap crossed the Rs 1 lakh crore mark, thus making it the sixth firm from the Tata stable to achieve the coveted milestone.
At 1:10 pm the Tata Power’s market cap stood at Rs 102,170.98 lakh crore. The price action was supported by strong volumes with nearly 8 crore shares changing hands around 1 pm.
On December 6, the market cap of Tata Power stood at Rs 93,974.94 crore.
JM Financial has upgraded the stock’s rating to Buy, setting a SOTP-based target price of Rs 350, indicating a potential upside of 24% from current levels.
In a note, JM Financial said that Tata Power's recalibrated strategy involves tapping high-margin group captive RE (renewables) opportunities, exiting low-value businesses, venturing into brownfield pumped hydro storage, and expanding transmission business beyond distribution.
The company is expected to see accelerated growth, going ahead, the domestic brokerage opines.
The other companies from the Tata group stocks with a market cap above Rs 1 lakh crore are TCS, which occupies the top spot with a market cap of Rs 13.27 lakh crore, Titan (Rs 3.18 lakh crore), Tata Motors (2.40 lakh crore), Tata Steel (Rs 1.60 lakh crore) and Trent (Rs 1.01 lakh crore).
The stock has delivered over 36% returns in the past 12 months outperforming Nifty which has returned over 12% during the same period.
Tata Motors shares also hit a fresh 52-week high of Rs 727.50 on Thursday.
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