Business
Tata Power Commences Solar Cell Production Amidst Share Price Surge
Tata Power shares experienced a notable increase of 7% during the late trading session on Tuesday. The company’s stock rose by 6.96% to reach a peak of Rs 446.95, ultimately closing 6.58% higher at Rs 445.75. This increase brings the year-to-date gain for the stock to 34.97%.
The uptick in share price follows the announcement by Tata Power regarding the commencement of solar cell production at its 4.3 GW solar cell and module manufacturing facility located in Tirunelveli, Tamil Nadu. This facility represents the largest single-location solar manufacturing site in India and incorporates advanced TOPCon and Mono Perc technology aimed at enhancing solar cell efficiency.
TP Solar, a subsidiary of Tata Power Renewable Energy Limited (TPREL), initiated commercial production from its 2 GW solar cell production line at this facility. This development marks a significant step forward after the successful production of solar modules earlier in the year. TPREL, which is part of Tata Power Company, plays a crucial role in aligning with India’s solar energy and net-zero targets.
According to statements made by Tata Power, the current 2 GW capacity for solar cell production will significantly enhance the company’s ability to meet the increasing demand for high-quality, domestically produced solar components, particularly for large-scale solar projects.
The company has indicated that it expects to ramp up production with the remaining 2 GW capacity being added over the next 4-6 weeks, achieving peak production levels in the coming months.
From a technical analysis perspective, support for the stock is identified in the Rs 435-430 range, while a critical breach above Rs 445 is seen as necessary for further price increases. Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, noted that a closing price above Rs 445 may lead to additional gains, potentially reaching as high as Rs 460.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, expressed confidence in the stock’s performance based on daily chart analysis. He recommended buying at the current market price, targeting Rs 480, with a stop loss set at Rs 430.
As of June 2024, promoters held a 46.86% stake in Tata Power.