Shares of Tata Power Co. gained more than 5% to one-month high on Tuesday after the company's subsidiary commenced production from the two-gigawatt solar cell line at its manufacturing facility in Tamil Nadu's Tirunelveli district.
The plant operated by TP Solar Ltd. is expected to ramp up production, with the remaining 2 GW capacity to be added over the next four to six weeks, reaching peak production within the next few months.
The solar cell production will enhance Tata Power's ability to meet the growing demand for high-quality and domestically produced solar components, especially for large-scale capacity-addition projects, the company said on Monday.
The module production line at the Tirunelveli plant, with a total cell and module manufacturing capacity of 4.3 GW, was commissioned in Oct. 2023 and has produced 1,250 MW of solar modules to date.
The company has committed nearly Rs 4,300 crore towards the establishment of this facility.
Shares of Tata Power advanced 5.6% to Rs 441.25 apiece. The stock was trading 5.3% higher at Rs 440 apiece by 12:20 p.m. The benchmark NSE Nifty 50 was trading 0.46% higher.
It has risen 62% in the last 12 months and 33% year-to-date. The total traded volume so far in the day stood at 2.4 times its 30-day average. The relative strength index was at 58.
Twelve out of the 22 analysts tracking Tata Power have a 'buy' rating on the stock, nine recommend 'sell' and one suggests 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 8%.
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