Tata Power Co.'s market capitalisation crossed the Rs 1 lakh crore mark on Thursday after hitting an all-time high. It becomes the sixth Tata Group firm to cross the milestone.
The company's market cap was Rs 1.04 lakh crore at 2:00 p.m.
The stocks surged nearly 10% to an all-time high on Thursday as JM Financial Ltd. upgraded it to 'buy' from a 'hold'.
The brokerage hiked the target price to Rs 350 from Rs 230 earlier, which meant a potential upside of 24% over the next 12 months, according to the brokerage's note.
JM Financial upgraded Tata Power's stock on the back of the "visible resolution of the Mundra issue," the expansion of the transmission business beyond distribution, tapping into renewable opportunities and its entry into brownfield pumped hydro storage.
JM Financial is forecasting a compound annual growth rate of 32% in profit after tax, revenue at 15% and Ebitda at 23%.
Tata Power's stock rose as much as 9.57% during the day to Rs 322.25 apiece on the NSE. It was trading 8.35% higher at Rs 318.70 apiece compared to a 0.13% advance in the benchmark Nifty 50 as of 1.03 p.m.
It has risen 53.44% on a year-to-date basis. The total traded volume so far in the day stood at 10 times its 30-day average. The relative strength index was 84.
Ten out of the 20 analysts tracking Tata Power have a 'buy' rating on the stock, three recommend 'hold' and seven suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 42.7%.
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