TATAPOWER - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | TATAPOWER | Market Cap | 1,30,641 Cr. | Current Price | 409 ₹ | High / Low | 465 ₹ |
| Stock P/E | 116 | Book Value | 57.6 ₹ | Dividend Yield | 0.61 % | ROCE | 7.60 % |
| ROE | 6.12 % | Face Value | 1.00 ₹ | DMA 50 | 412 ₹ | DMA 200 | 395 ₹ |
| Chg in FII Hold | 0.04 % | Chg in DII Hold | 0.78 % | PAT Qtr | 334 Cr. | PAT Prev Qtr | -160 Cr. |
| RSI | 42.8 | MACD | -2.32 | Volume | 45,54,807 | Avg Vol 1Wk | 58,10,232 |
| Low price | 342 ₹ | High price | 465 ₹ | PEG Ratio | -4.57 | Debt to equity | 1.42 |
| 52w Index | 54.2 % | Qtr Profit Var | -18.4 % | EPS | 3.52 ₹ | Industry PE | 32.1 |
📊 Chart Analysis: TATAPOWER is trading at ₹409, slightly below the 50 DMA (₹412) but above the 200 DMA (₹395), showing mixed signals. RSI at 42.8 suggests neutral-to-bearish momentum. MACD at -2.32 confirms mild negative momentum. Bollinger Bands show price near the lower band, reflecting selling pressure. Current volume (45.5L) is below the 1-week average (58.1L), showing reduced participation.
📈 Momentum Signals: Short-term momentum is weak, with RSI leaning bearish and MACD negative. Price hovering near the 200 DMA suggests indecision between bulls and bears.
💹 Support & Resistance: Strong support lies near ₹395 (200 DMA) and ₹342 (recent low). Immediate resistance is at ₹412 (50 DMA) and major resistance at ₹465 (recent high). Optimal entry zone: ₹400–₹410. Exit zone: ₹440–₹455.
🔄 Trend Status: The stock is currently consolidating downward with potential reversal signs if support near ₹395 holds.
Positive
- ✅ EPS of ₹3.52 supports valuation strength.
- ✅ Dividend yield of 0.61% provides modest returns.
- ✅ PAT improved significantly from -₹160 Cr. to ₹334 Cr.
- ✅ DII holdings increased by 0.78%, showing domestic investor confidence.
- ✅ FII holdings increased slightly by 0.04%, reflecting foreign interest.
Limitation
- ⚠️ Current price below 50 DMA, showing weak short-term strength.
- ⚠️ Extremely high P/E of 116 compared to industry P/E of 32.1, suggesting severe overvaluation.
- ⚠️ PEG ratio of -4.57 indicates poor growth expectations.
- ⚠️ ROCE at 7.60% and ROE at 6.12% are weak efficiency metrics.
- ⚠️ Debt-to-equity ratio of 1.42 indicates high leverage.
Company Negative News
- 📉 Quarterly profit variation of -18.4% highlights earnings pressure.
- 📉 Stock trading at only 54.2% of its 52-week index, reflecting underperformance relative to highs.
Company Positive News
- 📈 PAT turnaround from losses to profits highlights operational recovery.
- 📈 Domestic institutional investors increased holdings significantly, signaling confidence.
Industry
- ⚡ Power & utilities sector trading at industry P/E of 32.1, far lower than TATAPOWER’s P/E of 116, highlighting valuation concerns.
- ⚡ Sector supported by renewable energy expansion and government infrastructure initiatives.
Conclusion
📌 TATAPOWER is consolidating downward, trading near key moving averages with weak RSI and negative MACD. Entry around ₹400–₹410 with exit near ₹440–₹455 offers a cautious rebound opportunity. Fundamentals show profit recovery and institutional support, but high leverage, extreme valuation, and weak efficiency metrics are concerns. The stock may stabilize if support near ₹395 holds.
For broader context, you could explore a power sector outlook or compare TATAPOWER with peers through a valuation comparison.