Welcome to another exciting price prediction article, here, in this article we’ll be going to analyze and forecast the Tata Power Share Price Target from 2023 to 2050.
But before we discuss the future prices of Tata Power, let’s properly examine how the company earns profit, and revenue and what experts say regarding the company’s future potential growth.
However, all of this information helps our analysts to forecast the Tata Power Share Prices in the coming years, in fact, the readers will also get an idea about the business model of the company that could help them choose the right stocks for them.
So, let’s deep dive into the Tata Power Company’s complete overview including its fundamental and technical analysis, past years balance sheet, and the future growth potentials.
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Tata Power Ltd. Company Overview
Tata Power Ltd is India’s largest private Integrated Power supply utility which has seen tremendous growth over past decades.
Serving Indian consumers with uninterrupted power supply Tata Power Company building a solid reputation and trust among Indians.
The company is well-recognized for the services it offers to consumers such as Electricity Distribution, and a wide range of renewable energies including solar power plants, and wind power plants, and the company is also involved in the Electric Vehicle charging infrastructure and Home Automation solutions.
The Tata Power Company’s primary goal is to produce and deliver cost-effective and sustainable clean energy-powered solutions whether it’s Electricity or making EV charging stations.
Typically, if we closely look into the company’s future perspective then it’s clear that they are trying to make a strong hold on the upcoming revolutions in the global Tech market.
And to turns dream into reality Tata Power is already working on it and also the company has made significant changes on its working modules along with converts its business models according to market trend.
| Share Name | Tata Power Ltd. |
|---|---|
| Founded In | 1915 |
| CEO | Praveer Sinha |
| Sector | Power Utility |
| Industry | Electric Power Services |
| Market Cap | 81.64TCr |
| Revenue | ₹56,547.10 crore |
| Competitors | Adani Electricity, Reliance Energy, NHPC, NTPC, Torrent Power, |
| Official Website | www.tatapower.com |
Tata Power Business Model
If we specifically talking about the Tata Power Company’s business model then the company is completely based on the generation, transmission, and distribution of electricity.
However, most of the company’s revenues come from Electricity generation and distribution worth 85% respectively and the rest comes from its Renewable energy and other services.
Currently, Tata Power has a total capacity of around 14339 MW power of which 59% comes from thermal energy and 41% from clean energy sources like Hydro, Solar, and Wind power plants respectively.
Apart from Electricity production, the company is also showing interest in renewable energy by making Hybrid and solar power plants across the country and it is one of the positive factors that would help the company to take a major portion of the market.
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Tata Power Company’s Fundamental Analysis
There are some factors or points that make Tata Power a fundamentally strong company with a shining future.
Typically, the company has well-established itself as India’s leading private power utility company and also has a diversified portfolio of a strong track record of financial performance over 50 years.
In fact, Tata Power is ready now to set up a huge cluster in the renewable energy space in India by introducing reusable energy sources like Solar, wind, and Hydro power plants.
The company is well-positioned to conquer the upcoming market trend and demands for clean and sustainable energy resources and these points are enough to make Tata Power Company is giant power source.
However, there are some other challenges the company also faces including the rising demand for renewable power resources that made a huge competition on the market, and the regulatory risks involved with governments.
Overall, if we analyze the growth potential of Tata Power Company based on the above favouring factors towards the company’s growth then it comes to the conclusion that it has a certain number of strengths that are likely to be helpful in the near future for the company.
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Analyze of Tata Power Share Price Target Forecast
If we analyze the past 5 years’ financial report of Tata Power Share, we see tremendous growth from ₹65.85 in Sep 2018 to ₹2500 an average price in Sep 2023.
Therefore, analysts are bullish on the share price looking into the Tata Power Company’s previous years’ financial track records and also the craze and high growing demand for sustainable renewable energy sources in the coming years.
According to some industrialist experts and analysts Tata Power Company is well-positioned to capitalize on the coming revaluation in the EV-ready power stations and Reusable power supply. It would lead the company to massive success in the next 10 – 20 years.
| Year | Minimum Price | Maximum Price |
|---|---|---|
| 2023 | ₹168.43 | ₹285.64 |
| 2024 | ₹172.35 | ₹315.68 |
| 2025 | ₹189.68 | ₹415.89 |
| 2030 | ₹448.69 | ₹1058.09 |
| 2040 | ₹1324.11 | ₹3058.65 |
| 2050 | ₹2104.50 | ₹4563.52 |
Tata Power Share Price Target 2023
Surprisingly, in the past 5 years record depicts that the demand and growth in the Electricity sector has grown significantly by 8.87% in 2022-23 compared to 5.80% in 2016-17 in the Indian market.
Not only electricity other power utilities like renewable and clean energy sources demands also increased over the time period due to the increasing demand from the industrial and commercial sectors.
Mostly, Tata Power Company’s main focus is to make environment-friendly and reusable energy resources by implementing Wind and Solar plants across the country.
In fact, the rapidly growing market trend for Renewable Energy and Electric Vehicles is increasing day by day due to certain concerns such as climate change and the rising cost of fossil fuels.
| Year | Tata Power Share Price target 2023 |
|---|---|
| 2023 | ₹168.43 To ₹285.64 |
Looking at these points, experts have predicted that the share price of Tata Power Company is going to rise in the next few years and it could hit the minimum of ₹168.43 and rise up to ₹285.64 by the end of 2023.
Tata Power Share Price Target 2024
Tata Group is one of the most trusted and reputable companies among the all others in India and Tata Power is a part of this giant corporation that is mainly focused on serving Indian consumers with Electricity and other innovative technologies.
If we see the past 5 year’s growth report of Tata Power Corporation then it clearly depicts that the company made a huge boost in the EV charging sector rise by 150.6% according to some trust resources of the internet.
However, the company’s Revenue Growth rate of 8.1% per annum and future returns on equity of 11.3% gained the attention of investors to showing interest in the Electricity Sector.
| Year | Tata Power Share Price target 2024 |
|---|---|
| 2024 | ₹172.35 To ₹315.68 |
After analyzing the financial balance sheet of the company experts and analysts are bullish about the price of Tata Power and predict it is likely to be ranging from ₹172.35 to ₹315.68 maximum in 2024.
Tata Power Share Price Target 2025
As per reports, Tata Power has multiple ambitious goals for the future including increasing the Electricity generation capacity to 70 GW of which 50% is from renewable energy resources, and also expanding the EV charging infrastructure to approximately 1 Lakh all across India.
However, there are some other major aims that the company wants to achieve shortly such as becoming a leading supplier of Renewable energy solutions and home automation and energy as a service (EaaS) in India.
Although these plans are looking very ambitious they can be achievable because the company has a strong and experienced team management also it has the capacity and infrastructure to turn these goals into reality soon.
| Year | Tata Power Share Price target 2025 |
|---|---|
| 2024 | ₹189.68 to ₹415.89 |
So, most analysts including our team have a strong belief that in the next 3 years, Tata Power will achieve these goals and based on prevailing market prices in the Electric Sector they forecast ₹189.68 minimum and ₹415.89 maximum price in 2025.
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Tata Power Share Price Target 2030
As time passes, the demand and need for the electric sector and sustainable clean energy power resources are expected to be highly increased in the coming years.
Currently, Tata Power Company’s main focus is to find ways to produce electricity without causing pollution and harm to nature, so they are already working on this path to successfully convert eco-friendly systems.
Besides all the above ambitions looking into the company’s balance sheet may be the most important thing for analysts to analyze the future growth potential and the previous year’s growth rates.
| Year | Tata Power Share Price target 2030 |
|---|---|
| 2030 | ₹448.69 To ₹1058.09 |
Tata Power has a strong balance sheet where the company’s total market cap is around ₹821.04b while the revenue is ₹696.855b. The company’s Price-to-earning (PE) ratio is 23.4x which is a little bit higher compared to the estimated fair PE ratio of 14.3x.
But looking at the company’s debt amount of ₹534.99b while the debt to equity ratio is 151.0%, it may be annoying to investors but there is a relief point for all of those who are curious about the debt that it has reduced from 213.8% to 154% over the past 5 years.
Therefore, the prediction of Tata Power Share Price Target for 2030 ranges from ₹448.69 to ₹1058.09.
Tata Power Share Price Target 2040
Looking at the rapid growth of Electricity and Renewable power sources, analysts forecast that the share price of Tata Power Company is going to ₹1324.11 at a minimum and ₹3058.65 at a maximum price.
| Year | Tata Power Share Price target 2040 |
|---|---|
| 2040 | ₹1324.11 To ₹3058.68 |
Typically, our prediction is based on the company’s upcoming future plans and prospective along with Tata Power’s manufacturing capability and growth potential.
However, there are some major factors that could affect the share prices including climate change and most importantly technological advancement as there development of new types of energy storage technologies, and some other points
Also, if the company can adapt to these advanced technologies, then its share price is likely to be higher than our predictions. Read our another analysis on Infosys Share Price.
Tata Power Share Price Target 2050
Currently, Tata Power Company’s dividend yield is 0.77% and the industry average yield is around 3.9%, looking at these matrices Tata Power is a dividend-paying company according to some popular experts such as Simplywallst.
Also, as per their analysis, Tata Power’s dividend (0.78%) is higher than the other bottom 25% of dividend payers in the Indian market 0.32%, on the other hand, it is low when compared to the top 25% of other dividend payers in the market (1.36%).
Basically, if we look at the payout ratio which is 19.2% the company dividend payments are fully covered by the earnings of Tata Power. The company’s dividend per share is ₹2.00 and Earnings per Share is ₹11.00 which is stable.
| Year | Tata Power Share Price target 2050 |
|---|---|
| 2050 | ₹2104.50 To ₹4563.52 |
Aligning all of these dividend factors our team is bullish that Tata Power Company is going to be a good standing in terms of Dividend yield payout and though they forecast share prices will touch upon ₹2104.50 to ₹4563.52 in 2050.
What is future of Tata Power share?
As you all know Tata Power is India’s largest integrated power company which serves Electricity and EV charging stations all across India. In fact, the company is also actively involved in multiple power sectors including transmission, generation, and distribution.
Currently, Tata Power Company mainly focusing on reusable and renewable energy resources and also has the ambition of making a massive infrastructure for its growth in the coming years. As per experts, there are some other major favouring factors that would definitely help the company to capture the upcoming market trend.
Looking at the rising growth of the EV sector and renewable energy solutions Tata Power Company has already started working on this path to capitalize on the future growth potential.
Moreover, all of these points reassure investors or analysts that the future of Tata Power Company is likely to be promising and they believe also that in the next 20 – 30 years the company will be well-established.
Is Tata power a good buy for long term?
Whether Tata Power is a good buy or not for the long term depends on a number of reasons and also varies from person to person about their risk tolerance capacity and investment goals.
But when we specifically discuss whether Tata Power is really a good long-term investment or not then there might be some certain factors investors need to consider before making a decision.
As we stated earlier, the company has an amazing financial balance sheet with a good amount of future returns on equity (11.3%).
There are some other kinds of stuff like Tata Power’s innovative futuristic vision and EV charging Solutions and Renewable power sources that will help the company to become a leader in the reusable energy sector.
However, in the market of rapidly growing EV sector and high demand for cost-effective pollution-free energy sources Tata Power is already in a position to benefit from this trend, and in the near future it’ll be a major player in this sector.
All these factors indicate that Tata Power is going to be a very lucrative share in the future.
Why Tata Power Share Falling?
Tata Power’s share price has performed well since it was listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in 1994 and its all-time high is ₹278.10 (April 2022) with an average value of ₹235.25 from Oct 2021 to current date.
In the recent few months, Tata Power’s share price has been slightly dropped due to some factors like the rising coal price being the main factor as it is the most important ingredient to generate electricity, and increasing the coal price affects the company’s costs.
Is it good to invest in Tata Power?
As per our team member’s analysis, Tata Power share is going to be a high returns stock in the long term. The company has a solid infrastructure and business model and is already in a good and established position in the Electric Utility sector and renewable energy power sources to grow in the near future.
In fact, the company has a strong track record of performance over the past 10 years in the Electric utility market. Looking into the company’s diversified portfolio of energy sources such as thermal, hydroelectric, solar, and wind power plants it captured a huge place in the Indian market.
Currently, Tata Power focuses on producing Electric Vehicles charging solutions with speed as the demand for electric vehicles in the market is increasing day by day and its need is going to peak in the near future as well.
Typically, whenever you’re interested in investing in any company’s shares or stocks you’ll need to consider some points and also analyze the company’s fundamental and technical details yourself.
Looking at the company’s annual growth reports, dividend yield, revenues, and future growth potential these points can be very helpful for you to choose the Wright share for yourself.
F.A.Q’s || People Also Ask Questions
Is tata power overvalued?
Currently, Tata Power is trading at a price-to-earnings ratio of 23.6x worth around ₹259.85 and it is below the estimated fair value of ₹559.85. According to some experts Tata Power’s share price is trading below the fair value by more than 20%.
Can Tata Power share reach 1,000?
Seeing the company’s futuristic vision and interest in renewable energy power sources and EV charging stations Tata Power is likely going to be a giant clean-energy power company in the coming 10 – 15 years and its share prices also rise up to ₹1000 in 2030.
How many times Tata power share split?
As per reports Tata Power Company split its shares only once on September 26, 2011, and the split ratio is 1:10 since it was first listed on the stock exchange platform.
How many shares does tata power have?
According to the reports (June 2030) of Tata Power Company, they have a total of 319.53 Cr shares outstanding which means there are 3.1953 billion of shares the company trading in the market.
What is the target price of Tata Power in 2025?
According to the reports (June 2030) of Tata Power Company, they have a total of 319.53 Cr shares outstanding which means there are 3.1953 billion of shares the company trading in the market.
Final Thought
In this article, we’ve discussed the Tata Power Share Price Target from 2023 to 2050 and some other topics such as the company’s fundamentals and business model.
According to our analysts after looking at the company’s overall growth reports and financial conditions they believe the company is good for long-run investments, although there are some risks you’ll need to consider before making any decision.
However, if you’re satisfied enough after reading our analysis of the Tata Power Company’s share price prediction then you can give us ratings.
Disclaimer: – This article is strictly for educational purposes only and we do not provide any advice or tips for investment or recommend buying or selling any stocks, so kindly do your research and analysis before investing in any stock or shares.
