BSE:500400

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Executive Summary

The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity in India and internationally. More Details


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

How has Tata Power's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500400 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 500400's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.9%

500400

-0.7%

IN Electric Utilities

-0.3%

IN Market


1 Year Return

39.0%

500400

11.5%

IN Electric Utilities

15.9%

IN Market

Return vs Industry: 500400 exceeded the Indian Electric Utilities industry which returned 11.5% over the past year.

Return vs Market: 500400 exceeded the Indian Market which returned 15.9% over the past year.


Shareholder returns

500400IndustryMarket
7 Day2.9%-0.7%-0.3%
30 Day13.7%5.3%4.9%
90 Day57.9%32.3%24.5%
1 Year43.5%39.0%18.1%11.5%18.0%15.9%
3 Year-0.7%-7.3%14.2%2.1%9.7%4.4%
5 Year53.3%38.4%92.0%63.9%82.1%68.4%

Long-Term Price Volatility Vs. Market

How volatile is Tata Power's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tata Power undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500400 (₹85.5) is trading below our estimate of fair value (₹172.5)

Significantly Below Fair Value: 500400 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500400 is good value based on its PE Ratio (17x) compared to the IN Electric Utilities industry average (18.5x).

PE vs Market: 500400 is good value based on its PE Ratio (17x) compared to the Indian market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: 500400 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 500400 is overvalued based on its PB Ratio (1.4x) compared to the IN Electric Utilities industry average (1.2x).


Next Steps

Future Growth

How is Tata Power forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500400's forecast earnings growth (20.6% per year) is above the savings rate (7%).

Earnings vs Market: 500400's earnings (20.6% per year) are forecast to grow slower than the Indian market (25.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500400's revenue (7.3% per year) is forecast to grow slower than the Indian market (11.7% per year).

High Growth Revenue: 500400's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500400's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Tata Power performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500400 has a large one-off gain of ₹5.9B impacting its September 30 2020 financial results.

Growing Profit Margin: 500400's current net profit margins (4.5%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: 500400's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: 500400's earnings growth over the past year (122.9%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: 500400 earnings growth over the past year (122.9%) exceeded the Electric Utilities industry 5.3%.


Return on Equity

High ROE: 500400's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Tata Power's financial position?


Financial Position Analysis

Short Term Liabilities: 500400's short term assets (₹200.3B) do not cover its short term liabilities (₹265.4B).

Long Term Liabilities: 500400's short term assets (₹200.3B) do not cover its long term liabilities (₹431.5B).


Debt to Equity History and Analysis

Debt Level: 500400's debt to equity ratio (165%) is considered high.

Reducing Debt: 500400's debt to equity ratio has reduced from 192.9% to 165% over the past 5 years.

Debt Coverage: 500400's debt is well covered by operating cash flow (22.4%).

Interest Coverage: 500400's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Tata Power current dividend yield, its reliability and sustainability?

1.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500400's dividend (1.81%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: 500400's dividend (1.81%) is in the top 25% of dividend payers in the Indian market (1.81%)


Stability and Growth of Payments

Stable Dividend: 500400's dividends per share have been stable in the past 10 years.

Growing Dividend: 500400's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.7%), 500400's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500400's dividends in 3 years are forecast to be well covered by earnings (25.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.2yrs

Average management tenure


CEO

Praveer Sinha (58 yo)

2.67yrs

Tenure

₹53,330,717

Compensation

Mr. Praveer Sinha has been the Managing Director, Chief Executive Officer and Director of The Tata Power Company Limited (formerly known as Tata Power Co Ltd) since May 1, 2018. He serves as Chairman at Ta...


CEO Compensation Analysis

Compensation vs Market: Praveer's total compensation ($USD729.07K) is about average for companies of similar size in the Indian market ($USD729.45K).

Compensation vs Earnings: Praveer's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Praveer Sinha
CEO, MD & Director2.67yrs₹53.33mno data
Ramesh Subramanyam
Chief Financial Officer6.83yrs₹38.48mno data
Hanoz Mistry
Company Secretary & Compliance Officerno data₹13.25m0.00067%
₹ 1.8m
G. Rajagopalan
Chief Information Officerno data₹3.53mno data
Anand Agarwal
Chief Investor Relations Officerno datano datano data
A. Bapat
Head of Corporate Legalno datano datano data
Shalini Singh
Chief of Corporate Communications & Sustainabilityno datano datano data
Gobind Baghasingh
Executive VP & Chief Human Resource Officer14.17yrs₹6.68mno data
Rahul Shah
Chief of Strategy & New Business Servicesno data₹2.87mno data
Vijay Rajpal
Chief of Aviation14.75yrs₹4.84mno data
Neeraj Sharma
Chief Engineerno data₹3.12mno data
S. Sonalkar
Chief Of Business Excellence & CQH23.33yrs₹3.06mno data

14.2yrs

Average Tenure

58yo

Average Age

Experienced Management: 500400's management team is seasoned and experienced (14.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Praveer Sinha
CEO, MD & Director2.67yrs₹53.33mno data
Ashok Sinha
Independent Non-Executive Director1.67yrs₹4.27mno data
Natarajan Chandrasekaran
Non-Independent Non-Executive Chairman3.92yrs₹240.00k0.022%
₹ 59.9m
Banmali Agrawala
Non-Executive Director12.92yrs₹240.00kno data
Anjali Bansal
Independent Non-Executive Director4.25yrs₹5.49mno data
Vibha Padalkar
Independent Non-Executive Director4.25yrs₹6.28mno data
Hemant Bhargava
Non-Independent Non-Executive Director3.42yrs₹4.18mno data
Saurabh Agrawal
Non-Executive Director3.17yrs₹240.00kno data
Sanjay Bhandarkar
Independent Non-Executive Director4.25yrs₹5.95m0.00051%
₹ 1.4m
Kesava Chandrasekhar
Independent Non-Executive Director3.67yrs₹5.40mno data

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 500400's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500400 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.1%.


Top Shareholders

Company Information

The Tata Power Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Tata Power Company Limited
  • Ticker: 500400
  • Exchange: BSE
  • Founded: 1915
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₹273.202b
  • Shares outstanding: 3.20b
  • Website: https://www.tatapower.com

Number of Employees


Location

  • The Tata Power Company Limited
  • Bombay House
  • 24, Homi Mody Street
  • Mumbai
  • Maharashtra
  • 400 001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500400BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1991
TATAPOWERNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1991
TTP94BDL (Bourse de Luxembourg)SPONSORED GDRLUUSDMar 2005
TTP09BDL (Bourse de Luxembourg)SPON GDR REG SLUUSDJul 2009
TPCLLSE (London Stock Exchange)SPON GDR REG SGBUSDJul 2009

Biography

The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity in India and internationally. It operates through Generation, Renewables, Transmission and D...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 12:11
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.