Investors are always looking for stocks that may multiply their investments in the possible shortest time. There are few multibagger shares that managed to triple investors' money in a period of just one year. Tata Power, the country’s largest private power generation company, is one such stock that delivered more than 200% returns to its shareholders in the past one year, in comparison to 21% growth in BSE benchmark Sensex.
Shares of Tata Power Company surged precisely by 229% in the last 12-month period, with the stock price rising from its 52-week low of ₹89.95 touched on April 12, 2021, to a fresh all-time high of ₹295.90 on Wednesday. It breached its previous high of ₹269.70 touched on October 19, 2021.
To make it simpler, if you had invested ₹1 lakh in Tata Power, a largecap stock, on April 12, 2021, your investments would have tripled to ₹3.28 lakh at present.
The stock of Tata Group company has given consistent returns throughout the year by rising 67% in the last six months and 32% since the beginning of the calendar year 2022 (year-to-date) basis. It has rallied 36% in past one month and 23% in just a week amid heavy volume on improved business outlook.
Why are investors betting high on this power stock?
Investors are betting high on the Tata Group electric utilities company amid hopes that its earnings would be boosted by improvement in economic activities in the recent months with ease in Covid-19 restrictions and anticipation of higher power demand in summers. The company’s increased focus on renewable energy business such as solar and electric vehicles charging infrastructure also augur well for the stock.
Tata Power is one of India's largest renewable energy players with a portfolio of more than 7 gigawatt (GW) of ground-mount utility-scale, over 750 megawatt (MW) of rooftop and distributed generation projects across the country and installed over 55,000 solar water pumps in India till date. The company’s renewable energy arm has recently commissioned a 300 MW project in Dholera, Gujarat, the country’s largest single-axis solar tracker system. Besides, it also commissioned a 160 MW AC solar project at Jet star, Rajasthan.
Recently, the company collaborated with a slew of real estate companies to install EV charging points at their properties. Tata Power has teamed up with Vatika Group to install 59 EV charging points at its properties across Gurugram (Haryana), while it collaborated with Rustomjee Group to set up charging infrastructure at the commercial and residential projects of the latter across Mumbai metropolitan region.
Brokerages view on Tata Power
Based on recent developments, domestic brokerage firm Anand Rathi affirmed a ‘Buy’ rating on the multibagger stock with a revised target price of ₹316 per share.
Analyst at ShareKhan also expects the company's performance to improve from current levels and maintain a buy on the stock with a target price of ₹315.