Tata Power Company encountered a decline of over 2 percent on November 30, triggered by a negative assessment from both Morgan Stanley and Citi following the company’s revision of its FY27 revenue and net profit projections.
The bearish sentiments from these international brokerages emerged a day after Tata Power MD & CEO Praveer Sinha disclosed the company’s ambitious target to double its revenue, operating profit, and profit after tax over the next four years.
Morgan Stanley, maintaining an “Underweight” rating on Tata Power stock, set a target price of Rs 213 per share. The brokerage acknowledged the company’s downward adjustment of FY27 revenue and PAT guidance by 13 percent and 17 percent, respectively, deeming the revised targets more realistic.
Furthermore, Tata Power’s capex guidance underwent a reduction of around 20 percent, a move viewed by Morgan Stanley as conservative in light of net debt to EBITDA. Tata Power has outlined ambitious plans for a Rs 60,000 crore capex over FY24-27, with a significant 45 percent allocated to renewables.
As of 11:30 am on the same day, Tata Power Company’s shares were observed to be trading 2.18% lower at ₹267.45.