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.


Snowflake Analysis

6 star dividend payer and good value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.6%

500400

-0.6%

IN Electric Utilities

0.3%

IN Market


1 Year Return

-30.9%

500400

-13.3%

IN Electric Utilities

-11.3%

IN Market

Return vs Industry: 500400 underperformed the Indian Electric Utilities industry which returned -13.3% over the past year.

Return vs Market: 500400 underperformed the Indian Market which returned -11.3% over the past year.


Shareholder returns

500400IndustryMarket
7 Day13.6%-0.6%0.3%
30 Day17.3%13.3%7.2%
90 Day65.1%20.6%26.2%
1 Year-30.9%-30.9%-10.0%-13.3%-9.6%-11.3%
3 Year-35.8%-39.2%-6.0%-14.8%-0.3%-5.6%
5 Year-24.7%-31.1%25.5%8.8%21.6%10.2%

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 (₹49.85) is trading below our estimate of fair value (₹186.07)

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


Price To Earnings Ratio

PE vs Industry: 500400 is poor value based on its PE Ratio (11.4x) compared to the Electric Utilities industry average (9.4x).

PE vs Market: 500400 is good value based on its PE Ratio (11.4x) compared to the Indian market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: 500400 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 500400 is good value based on its PB Ratio (0.7x) compared to the IN Electric Utilities industry average (0.8x).


Next Steps

Future Growth

How is Tata Power forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500400's forecast earnings growth (5.4% per year) is below the savings rate (7.2%).

Earnings vs Market: 500400's earnings (5.4% per year) are forecast to grow slower than the Indian market (18.8% per year).

High Growth Earnings: 500400's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500400's revenue (4% per year) is forecast to grow slower than the Indian market (7.3% per year).

High Growth Revenue: 500400's revenue (4% 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 (10.6%).


Next Steps

Past Performance

How has Tata Power performed over the past 5 years?

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500400 has a large one-off gain of ₹10.0B impacting its March 31 2005 financial results.

Growing Profit Margin: 500400's current net profit margins (4.9%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: 500400's earnings have grown significantly by 26% per year over the past 5 years.

Accelerating Growth: 500400's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500400 had negative earnings growth (-34.8%) over the past year, making it difficult to compare to the Electric Utilities industry average (10.2%).


Return on Equity

High ROE: 500400's Return on Equity (7.9%) 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 (₹182.7B) do not cover its short term liabilities (₹275.8B).

Long Term Liabilities: 500400's short term assets (₹182.7B) do not cover its long term liabilities (₹402.7B).


Debt to Equity History and Analysis

Debt Level: 500400's debt to equity ratio (203.4%) is considered high.

Reducing Debt: 500400's debt to equity ratio has reduced from 234.3% to 203.4% over the past 5 years.

Debt Coverage: 500400's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: 500400's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500400's dividend (3.11%) is higher than the bottom 25% of dividend payers in the Indian market (0.7%).

High Dividend: 500400's dividend (3.11%) is in the top 25% of dividend payers in the Indian market (2.92%)


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 (35.4%), 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 (20.7% payout ratio).


Next Steps

Management

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

8.9yrs

Average management tenure


CEO

Praveer Sinha (58yo)

2.17yrs

Tenure

₹45,992,931

Compensation

Mr. Praveer Sinha has been the Managing Director of The Tata Power Company Limited (formerly known as Tata Power Co Ltd) since September 1, 2007. He serves as Chairman at Tata Power Renewable Energy and al ...


CEO Compensation Analysis

Compensation vs Market: Praveer's total compensation ($USD609.11K) is about average for companies of similar size in the Indian market ($USD664.28K).

Compensation vs Earnings: Insufficient data to compare Praveer's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Praveer Sinha
CEO, MD & Director2.17yrs₹45.99mno data
Ramesh Subramanyam
CFO & Compliance Officer6.33yrs₹34.27mno data
Hanoz Mistry
Company Secretary8.92yrs₹11.86m0.0010% 1.2m
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 Officer13.67yrs₹6.68mno data
Rahul Shah
Chief of Strategy & New Business Servicesno data₹2.87mno data
Vijay Rajpal
Chief of Aviation14.25yrs₹4.84mno data

8.9yrs

Average Tenure

58yo

Average Age

Experienced Management: 500400's management team is seasoned and experienced (8.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Praveer Sinha
CEO, MD & Director2.17yrs₹45.99mno data
Ashok Sinha
Independent Non-Executive Director1.17yrsno datano data
Natarajan Chandrasekaran
Non-Independent Non-Executive Chairman3.42yrs₹300.00k0.0074% 9.2m
Banmali Agrawala
Non-Executive Director12.42yrs₹390.00kno data
Anjali Bansal
Independent Non-Executive Director3.75yrs₹5.42mno data
Vibha Padalkar
Independent Non-Executive Director3.75yrs₹5.45mno data
Hemant Bhargava
Non-Independent Non-Executive Director2.92yrs₹2.09mno data
Saurabh Agrawal
Non-Executive Director2.67yrs₹420.00kno data
Sanjay Bhandarkar
Independent Non-Executive Director3.75yrs₹6.04m0.00060% 746.5k
Kesava Chandrasekhar
Independent Non-Executive Director3.17yrs₹4.36mno data

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: 500400's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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: ₹124.420b
  • Shares outstanding: 2.70b
  • Website: https://www.tatapower.com

Number of Employees


Location

  • The Tata Power Company Limited
  • Corporate Center Block A
  • 34 Sant Tukaram Road
  • Mumbai
  • Maharashtra
  • 400009
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500400BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1991
TATAPOWERNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1991
500400NSEI (National Stock Exchange of India)INR1ININRJan 1992
TTP94BDL (Bourse de Luxembourg)GDR-REP 900 ORD INR1 REG'SLUUSDMar 2005
TTP09BDL (Bourse de Luxembourg)GDR EACH REPR 10 SH 'REG SLUUSDJul 2009
TPCLLSE (London Stock Exchange)GDR EACH REPR 10 SH '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 Distribution, and Others segments. The Generation segment generates electricity from hydroelectric and thermal sources, such as coal, gas, and oil. This segment is also involved in the coal mining, trading, shipping, and related infra activities. The Renewables segment generates power from renewable energy sources, which include wind and solar. This segment also provides engineering, procurement, and construction, as well as maintenance services related to solar plants. The Transmission and Distribution segment transmits and distributes electricity; sells power to retail customers through distribution network and related ancillary services; and trades in power. The Others segment offers project management contracts/infrastructure management, property development, and satellite communication and investment services, as well as rents oil tanks. In addition, it manufactures and sells solar photovoltaic cells and modules; operates electric vehicle charging stations; generates electricity through waste heat sources; and provides GIS testing, electrical testing, etc. to various clients. As of March 31, 2019, it had an operational generation capacity of 10,957 MW. The Tata Power Company Limited was founded in 1915 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 12:36
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
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.