The stock market is currently in a correction phase. Also, stock-specific action is being seen during the corporate earnings season. The share price of Tata Power Company Ltd is witnessing a rise due to the impact of strong quarterly results. On Friday, Tata Power shares closed at Rs 444.70 with a gain of 4.15%.

Shares of Tata Power Company rose by more than 4 percent after the release of its second-quarter results for FY 2025. After the results, many brokerage firms have given it a 'buy' rating.

Elara Securities said Tata Power's transmission capex will benefit from power distribution capex and green investments. Also, the company has raised the target price for the stock to Rs 518 and raised its rating from 'accumulate' to 'buy'.

Other brokerage firms including Motilal Oswal Financial Services, JM Financial, and Nomura also maintained their 'buy' rating.

Morgan Stanley also maintained its positive view on Tata Power and maintained an 'overweight' rating on Tata Power and set a high target price of Rs 577.

In Q2FY25, Tata Power reported a 6 percent year-on-year growth in consolidated net profit to Rs 926.5 crore. However, revenue remained stable at Rs 15,697.7 crore, mainly due to lower generation revenue during the monsoon season. This was the 20th consecutive quarter of post-tax (PAT) growth for the company.

The company achieved EBITDA of Rs 3,808 crore, up 23 percent from the same quarter last year. Additionally, Tata Power has crossed 15 GW of installed generation capacity including both conventional and renewable sources and its clean energy portfolio now exceeds 12.9 GW (6.4 GW in operation and 6.5 GW under construction).

In terms of capital expenditure, Tata Power spent around Rs 5,200 crore in Q2 FY25, taking its total expenditure for H1 FY25 to Rs 9,100 crore, while the full-year plan was around Rs 20,000 crore.