Tata Power’s Mixed Week: -0.16% Price Change Amid Technical Recovery and Financial Challenges

23 February 2026: Mixed Technical Signals Amid Mild Momentum Shift

On Monday, 23 February, Tata Power’s share price closed at Rs.378.95, marking a modest gain of 0.26% on the day. This price movement came alongside a 0.39% rise in the Sensex, which closed at 36,817.86. The stock demonstrated a subtle shift in technical momentum, moving from a bearish to a mildly bearish trend. Intraday, the stock traded between Rs.369.35 and Rs.378.95, remaining comfortably above its 52-week low of Rs.332.00 but below the 52-week high of Rs.416.70.

Technical indicators presented a complex picture: the weekly Moving Average Convergence Divergence (MACD) remained bearish, while the monthly MACD improved to mildly bearish, signalling potential stabilisation. The Relative Strength Index (RSI) hovered neutrally, and the Know Sure Thing (KST) oscillator mirrored the MACD’s mixed signals. Daily moving averages and Bollinger Bands suggested mild bearishness, with price near the lower bands indicating cautious investor sentiment. Volume indicators such as On-Balance Volume (OBV) showed no clear trend, while Dow Theory readings hinted at a mildly bullish weekly signal.

This nuanced technical environment suggested a stock in transition, with short-term momentum subdued but longer-term indicators beginning to stabilise. Investors were advised to monitor key support near Rs.370 and resistance around Rs.380 to Rs.385 for signs of a more decisive trend.

24 February 2026: Mojo Score Upgrade Reflects Technical Improvements Despite Financial Challenges

On 24 February, Tata Power’s Mojo Score was upgraded from Strong Sell to Sell by MarketsMOJO, reflecting a cautious improvement in its technical outlook. The stock closed at Rs.379.75, up 0.21% on the day, while the Sensex declined 0.78% to 36,530.09. This upgrade was driven primarily by a shift in technical indicators from bearish to mildly bearish, signalling stabilisation in price momentum despite ongoing financial headwinds.

Financially, the company faced challenges with a 23.5% decline in Profit After Tax (PAT) to Rs.771.98 crores in Q3 FY25-26 compared to the previous four-quarter average. Return on Capital Employed (ROCE) averaged 8.07%, with half-year ROCE at 10.50%, indicating modest capital efficiency. The operating profit to interest coverage ratio was a concerning 2.23 times, and the Debt to EBITDA ratio remained elevated at 5.03 times, highlighting leverage risks.

Despite these pressures, valuation metrics were attractive, with an Enterprise Value to Capital Employed ratio of 1.9, suggesting the stock trades at a discount relative to peers. Long-term sales growth remained robust at an annualised 17.41%, with operating profit growing 15.71% per annum. Institutional investors held a significant 27.54% stake, increasing by 0.68% in the previous quarter, signalling some confidence in the company’s prospects.

Technical indicators supporting the upgrade included a mildly bullish weekly MACD, neutral RSI readings, and a mildly bullish weekly OBV, suggesting some accumulation. However, monthly indicators remained mildly bearish or neutral, underscoring the mixed but improving technical landscape.

25 to 27 February 2026: Price Consolidation and Weekly Close

On 25 February, Tata Power’s stock price rose by 0.38% to Rs.381.20, outperforming the Sensex’s 0.41% gain. This day saw the highest weekly close for the stock, reflecting some positive momentum following the Mojo upgrade. However, volumes surged significantly to 1,184,105 shares, indicating heightened trading interest.

On 26 February, the stock retraced slightly, closing at Rs.380.05, down 0.30%, while the Sensex gained 0.19%. The following day, 27 February, saw a sharper decline of 0.71% to Rs.377.35, with the Sensex falling 1.16%. This final trading day’s weakness contributed to the week’s overall marginal decline in Tata Power’s share price.

Despite the weekly dip of 0.16%, Tata Power outperformed the Sensex, which declined 0.96% over the same period. The stock’s relative resilience amid broader market weakness highlights the stabilising technical backdrop and investor interest despite financial concerns.

Key Takeaways

Technical Recovery Amid Mixed Signals: Tata Power’s technical indicators shifted from bearish to mildly bearish, prompting a Mojo Score upgrade from Strong Sell to Sell. Weekly MACD and OBV showed signs of stabilisation and mild accumulation, though monthly indicators remained cautious.

Financial Challenges Persist: The company’s profitability declined with a 23.5% drop in PAT and elevated leverage metrics, including a Debt to EBITDA ratio of 5.03 times and a low interest coverage ratio of 2.23 times. These factors continue to weigh on the stock’s fundamental outlook.

Valuation and Long-Term Growth: Despite short-term pressures, Tata Power’s valuation remains attractive with an EV to Capital Employed ratio of 1.9. Long-term sales and operating profit growth rates exceed 15% annually, supporting the company’s growth narrative.

Relative Outperformance: The stock marginally outperformed the Sensex over the week (-0.16% vs. -0.96%), reflecting resilience amid broader market weakness and technical improvements.

Conclusion

Tata Power Company Ltd’s week was characterised by a delicate balance between technical recovery and ongoing financial headwinds. The upgrade in Mojo Score to Sell reflects cautious optimism driven by stabilising momentum and attractive valuation metrics. However, the company’s profitability challenges and high leverage remain significant concerns. The stock’s slight outperformance of the Sensex amid a broadly negative market environment underscores its relative strength but also highlights the need for continued monitoring of both technical and fundamental developments. Investors should remain attentive to key price levels and financial trends to gauge the stock’s trajectory in the coming weeks.

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