Tata Power jumps 8.4%, up 46% in a month
Shares of Tata Power jumped 8.4 per cent on Monday. The stock has extended its one-month run to over 46 per cent.
The latest surge comes on the back of Reliance Industries’ (RIL) acquisition of Sterling & Wilson, which operates in the solar energy space.
“In yet another positive TATA POWER (~) development, RIL’S acquisition of
40 per cent stake in
Wilson at 2025 times
FY23E P/E underpins our thesis on Tata Power Solar’s much superior business prospects and leaves room for valuation upside of 50 per cent (~10/share),” said Edelweiss in a note. Market observers say the stock has also been moving up on the back of a technical factor — potential inclusion in the MSCI.
According to analysts, Tata Power’s MSCI inclusion prospects have almost got cemented following the steep increase in its stock price over the past one month. An inclusion in MSCI Standard Index will boost foreign flows into the stock next month, when the changes would become effective.