Tata Power Stock Gets a Boost with HSBC Upgrade

shares rallied 4% following an upgrade from HSBC. The international brokerage firm revised its rating on the stock to "hold" from "reduce", signaling increased confidence in the company's performance. Improved Execution Despite Challenges HSBC cited Tata Power's improved execution as a key factor in the upgrade, noting the company's ability to navigate a challenging macroeconomic environment. While acknowledging strong performance in module/cell manufacturing and EPC turnaround, the brokerage highlighted the need for accelerated renewable commissioning. Despite the positive news, Tata Power's shares have experienced a 30% decline from their 52-week high. HSBC attributed this correction to factors such as weak power demand, slow progress in power purchase agreements and privatization, and challenges in project execution. The brokerage also pointed to key risks for Tata Power, including government approvals, competitive intensity, and coal availability. While HSBC sees no major positive catalysts in the medium term, it has increased its FY25-26 EPS estimates by 9-13 percent.