📉 Tata Power Share Price Plummets After Q1 Results
After the results of the first quarter of March, the share price of Tata Power’s company has seen a decline. On Thursday, the share fell by 3% in the market to reach Rs 419.55. Global brokerage firm Goldman Sachs has said that the stock could see a decline of up to 45% in the next 12 months. The brokerage has given Tata Power’s shares a ‘sell’ rating with a target price of Rs 240 per share. Tata Power’s share has risen by 75% in the last six months and 110% in the last 12 months.
📈 Analyst Ratings and Recommendations
Another brokerage firm CLSA has also recommended selling Tata Power with a target price of Rs 297. CLSA has said that shares are 35 times more expensive compared to the estimated earnings for the fiscal year 2025. The quality of the company’s results remains challenging. Out of 21 analysts, eight have given a buy rating for the stock, while three have recommended holding the shares. Additionally, 10 other analysts have suggested selling the shares. Analysts generally agree that the shares could fall by 20% from current levels.
💰 Strong Financial Performance in Q1 FY 2024
The company recorded an 11% increase in profits on an annual basis in the first quarter of March. Tata Power earned a net profit of Rs 1,046 crore in the quarter. This is an increase from the Rs 939 crore net profit earned in the same quarter of the previous fiscal year. The company’s revenue increased by 27% to Rs 15,846.50 crore in the quarter ending on March 31. Tata Power’s board of directors has recommended a final dividend of Rs 2 per share. The company has set July 4, 2024, as the record date for dividend payment.
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