Tata Power Ltd. shares are currently trading at a seven-month high, allaying the worries of investors looking to make a profit on the Tata Group stock exchange. In fact, since March 28 of this year, the stock has increased by over 23%, outpacing the yearly and year-to-date returns of 2.15% and 8.57%, respectively.
On December 8 of last year, the stock reached a close of Rs 225.05, a level that Tata Power shares recaptured after seven months. Similar to this, the Tata Power stock rose 23.36% in the following 3.5 months on the BSE after closing at Rs 183.95 on March 28 of this year.
The increase in value since the end of March this year might be attributed to rating agencies improving their prognosis for Tata Power.
S&P Global Ratings improved Tata Power’s rating at the end of April to ‘BB+’ with a stable outlook. Tata Power stated that S&P Global Ratings had raised the company’s rating by one notch, from BB with a stable outlook to BB+ with a stable outlook.
On June 21, India Ratings upheld other ratings and assessed Tata Power Company’s new NCDs as “IND AA”/Stable.
The non-convertible debentures of Tata Power Company Limited (Tata Power) received a “CRISIL AA/Stable” rating from CRISIL Ratings on the same day that it reaffirmed its “CRISIL AA/Stable/CRISIL A1+” ratings for bank facilities and existing debt instruments.
The stock’s surge was also fueled by the Q4 earnings. Tata Power announced a 48% increase in fourth-quarter profit for the fiscal year 2022–2023 (FY23) on May 5 of this year. In the most recent quarter, net profit increased to Rs 939 crore from Rs 632 crore during the same period last year.
The corporation added that the Q4 results were supported by solid performance across all businesses, making this the 14th consecutive quarter of profit after tax (PAT) increase.