{"id":6138,"date":"2025-12-16T12:55:17","date_gmt":"2025-12-16T12:55:17","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=6138"},"modified":"2025-12-16T12:55:17","modified_gmt":"2025-12-16T12:55:17","slug":"tata-power-share-price-target-2030-double-profits","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/tata-power-share-price-target-2030-double-profits\/","title":{"rendered":"This Tata Stock Plans to Double Profits by 2030: Here&#8217;s Why Analysts Are Bullish"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you have been looking for a solid investment in the power sector, you might want to pay attention to what market experts are saying about Tata Power.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite some recent ups and downs in the market, analysts at Motilal Oswal remain confident about the long-term value of this Tata stock.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a recent report, the domestic brokerage firm maintained a &#8216;Buy&#8217; rating on the stock with a price target of \u20b9500 per share. This suggests a significant potential upside for investors who are willing to hold the stock for the long haul.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But does its economics hold up to the hype?\u00a0<\/span><\/p>\n<h2><b>Big Ambitions for 2030<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The top management of <\/span><a href=\"https:\/\/www.paytmmoney.com\/equities\/company\/nse\/tata-power.html?id=1000002704\"><span style=\"font-weight: 400;\">Tata Power<\/span><\/a><span style=\"font-weight: 400;\"> recently met with analysts in Bhubaneswar to outline their roadmap for the next few years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the takeaways from the meeting, Tata Power has set some very ambitious financial targets for the financial year 2030 (FY30).<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Doubling Profits:<\/b><span style=\"font-weight: 400;\"> The company plans to double its EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) to a massive \u20b930,000 crore by FY30.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Profit Surge:<\/b><span style=\"font-weight: 400;\"> They are also targeting a Profit After Tax (PAT) of \u20b910,000 crore.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To put this in perspective, both these figures represent more than a two-fold increase compared to the levels recorded in the current financial year (FY25). For investors, this signals strong earnings visibility and financial health in the coming years.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"> CNBC-TV-18, Moneycontrol)<\/span><\/i><\/span><\/p>\n<h2><b>Revised Renewable Energy Targets<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While the overall vision remains aggressive, the company has made some practical adjustments to its capacity targets. Motilal Oswal noted that the operational renewable capacity target for FY30 has been revised slightly downwards from 33 gigawatts (GW) previously to 30 GW.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, the target for renewable energy capacity has been reduced from 23 GW to 20 GW. However, even with this revision, the growth trajectory remains impressive. Currently, the company has an installed capacity of about 16 GW, with 7.1 GW coming from green sources. Scaling this up to 30 GW is still a massive undertaking that promises substantial growth.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"> CNBC-TV-18)<\/span><\/i><\/span><\/p>\n<h2><b>The Mundra Power Plant Boost<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of the most exciting developments highlighted by Motilal Oswal is the Mundra power plant.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The brokerage revealed that Tata Power is in advanced discussions to finalise a new special power purchase agreement (SPPA). This new mechanism is expected to be similar to \u2018Section XI\u2019,\u00a0 that allows the government to order power plants to operate during critical situations while ensuring they can recover their fuel costs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, in the case to Tata Power:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The Problem<\/b><span style=\"font-weight: 400;\">: The Mundra plant runs on imported coal. When global coal prices shoot up, running the plant becomes too expensive because old contracts don&#8217;t allow Tata Power to charge higher rates. In the past, they would shut down to avoid losses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The \u2018Section XI\u2019 Fix<\/b><span style=\"font-weight: 400;\">: During high power demand, the government invokes Section XI to order the plant to run at full capacity while allowing Tata Power to pass on higher coal costs to buyers. This keeps the lights on and ensures fair payment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The New Deal<\/b><span style=\"font-weight: 400;\">: The proposed mechanism aims to make this a permanent contract that always covers fuel costs instead of waiting for emergency orders. If successful, this would enable power scheduling from January 2026, improving plant utilization and providing clearer earnings visibility for investors.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"> CNBC-TV-18, Moneycontrol)<\/span><\/i><\/span><\/p>\n<h2><b>Focus on Captive Generation and Hydro Projects<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Apart from the big grid projects, the company is sharpening its focus on &#8220;captive generation.&#8221; This refers to power plants set up by industries for their own use. Tata Power plans to prioritise this segment, aiming to add 2 to 2.5 GW of capacity every year starting from FY27.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company is also making strides in hydro and pumped storage projects, which are crucial for balancing power grids.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Khorlochhu Hydro Project (600 MW):<\/b><span style=\"font-weight: 400;\"> Expected to be ready by 2029.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dorjilung Hydro Project (1,125 MW):<\/b><span style=\"font-weight: 400;\"> Targeted for 2032.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Bhivpuri Pumped Storage (1,000 MW):<\/b><span style=\"font-weight: 400;\"> Targeted for 2028.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Shirwata Project (1,800 MW):<\/b><span style=\"font-weight: 400;\"> Expected by 2029.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"> Business Today)<\/span><\/i><\/span><\/p>\n<h2><b>Manufacturing and New Tech<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Tata Power is not just generating power. It wants to manufacture the equipment too. The company&#8217;s CEO and MD, Praveer Sinha, confirmed that they are looking to set up a massive 10 GW wafer and ingot plant.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This project is estimated to cost \u20b96,500 crore. It is a strategic move towards &#8220;backward integration,&#8221; meaning the company will make its own raw materials for solar panels. Since they already make solar cells and modules, this new plant will make them a completely integrated solar player.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, the company is looking into the future with nuclear energy. They are exploring the setup of small modular reactors (SMR) with a capacity of 20-50 MW. However, this will depend on the government making legal amendments to allow private players into the nuclear space.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"> Economic Times)<\/span><\/i><\/span><\/p>\n<h2><b>What This Means for Investors<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">With over 43.36 lakh retail investors already holding this stock as of September 30, the interest in Tata Power is undeniable. Motilal Oswal believes that the company&#8217;s strong focus on renewable energy, the potential resolution at Mundra, and the expansion into solar manufacturing create a solid case for long-term value. With a target price of \u20b9500, the experts see plenty of room for growth.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"> Business Today)<\/span><\/i><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><b><i>Disclaimer:<\/i><\/b><i><span style=\"font-weight: 400;\"> Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation.<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">Investors are requested to do their own due diligence before investing. Paytm Money Ltd SEBI Reg No. Broking \u2013 INZ000240532, Depository Participant \u2013 IN \u2013 DP \u2013 416 \u2013 2019, Depository Participant Number: CDSL \u2013 12088800, NSE (90165), BSE (6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019. For complete Terms &amp; Conditions and Disclaimers visit: <\/span><\/i><a href=\"https:\/\/www.paytmmoney.com\/stocks\/policies\/terms\"><i><span style=\"font-weight: 400;\">https:\/\/www.paytmmoney.com\/stocks\/policies\/terms<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> .<\/span><\/i><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you have been looking for a solid investment in the power sector, you might want to pay attention to what market experts are saying about Tata Power.\u00a0 Despite some recent ups and downs in the market, analysts at Motilal Oswal remain confident about the long-term value of this Tata stock. In a recent report,<a href=\"https:\/\/www.paytmmoney.com\/blog\/tata-power-share-price-target-2030-double-profits\/\">Continue reading <span class=\"sr-only\">&#8220;This Tata Stock Plans to Double Profits by 2030: Here&#8217;s Why Analysts Are Bullish&#8221;<\/span><\/a><\/p>\n","protected":false},"author":51,"featured_media":6139,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[295,293,291,294,292,296,290,234],"class_list":["post-6138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ebitda-target","tag-long-term-value","tag-motilal-oswal","tag-mundra-power-plant","tag-renewable-energy","tag-solar-manufacturing","tag-tata-group-stock","tag-tata-power"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=6138"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6138\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/6139"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=6138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=6138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=6138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}