HSBC has upgraded Tata Power’s share price rating from ‘Reduce’ to ‘Hold’ and raised the target price to ₹345 from the previous ₹300, citing improving execution despite a weak macro environment.
The company is performing well in module/cell manufacturing and EPC turnaround, but renewable commissioning needs acceleration. HSBC noted that weak power demand, slow PPA progress, discom privatization challenges, and project execution issues have contributed to the recent stock correction.
Despite the upgrade, HSBC does not see material positive catalysts in the medium term but has raised its FY25-26 EPS estimates by 9-13%.
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