Tata Group stocks have demonstrated notable growth in 2024, with a collective market capitalization rise of 15.4 percent since June, fueled by robust performances from major companies such as Tata Consultancy Services and Tata Motors.
Investing in these stocks is attractive due to their diversification across multiple sectors, reliable dividend payouts, and potential for capital appreciation, positioning them as a strong option for long-term wealth generation.
Here are two such Tata Group stocks to buy for an upside of 25 percent:
Tata Power Limited
With a market capitalization of Rs.1.46 lakh crore, the share price of Tata Power Limited reached an intra-day high of Rs.460.95 per share on Tuesday, rising 4.5 percent from its previous close of Rs.441.30 apiece.
Global brokerage firm Nomura has started coverage on Tata Power with a ‘Buy’ rating, setting a price target of Rs.560 per share. This target suggests a potential upside of more than 22 percent from the current market price.
The foreign brokerage anticipates Tata Power to achieve a strong 16 percent EBITDA compound annual growth rate (CAGR) from FY24 to FY27. This growth is expected to be fueled by a doubling of renewable energy capacity and solid performance in the solar EPC order book.
Regarding its financial performance, the company reported a 14 percent year-on-year increase in revenue for Q1 FY25, totaling Rs.17,294 crore, along with a 4.2 percent rise in net profit to Rs.1,189 crore.
Titan Company Limited
With a market capitalization of Rs.3.13 lakh crore, the share price of Titan Company Ltd reached an intra-day high of Rs.3,595.00 per share on Tuesday, rising 0.16 percent from its previous close of Rs.3,589.25 apiece.
International brokerage, Emkay Global Financial is optimistic about Titan Company and has recommended a ‘Buy’ rating on the stock, setting a target price of Rs.4,400 per share, suggesting an upside potential of 25 percent.
Brokerage believes Titan has exceeded growth expectations in most segments in its Q2 business update, particularly in jewelry, which reported a notable 26 percent growth compared to the anticipated 15 percent and 9 percent in Q1.
In terms of financial performance, the company reported a 12 percent year-on-year increase in revenue for Q1 FY25, reaching Rs.13,266 crore. However, net profit declined by 5.5 percent to Rs.715 crore.
Written by – Siddesh S Raskar
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