Tata Power shares get Equal Weight rating from Morgan Stanley with target price of Rs 399

Tata Power shares faced selling pressure despite Morgan Stanley maintaining an 'Equal Weight' rating and a target price of Rs 399. The brokerage's outlook is based on the company's strong Q1 FY27 performance, which included double-digit profit growth and record quarterly capital expenditure. This spending is focused on expanding its renewable energy, transmission, and distribution networks.

For investors, this rating signals that the stock is fairly valued at current levels. The brokerage views the company's strategic investments as a positive step for long-term growth, but they do not see immediate upside. The focus remains on execution and the company's ability to manage its heavy capital spending.

Investors should watch the company's progress on its renewable energy targets and how it plans to utilize the raised capital. Market sentiment will likely depend on whether the company can sustain its growth momentum and improve its operational efficiency in the coming quarters.