BSE:500400

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and fair 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


Market Performance


7 Day Return

-1.6%

500400

0.3%

IN Electric Utilities

3.1%

IN Market


1 Year Return

-14.5%

500400

0.9%

IN Electric Utilities

3.7%

IN Market

Return vs Industry: 500400 underperformed the Indian Electric Utilities industry which returned 0.9% over the past year.

Return vs Market: 500400 underperformed the Indian Market which returned 3.7% over the past year.


Shareholder returns

500400IndustryMarket
7 Day-1.6%0.3%3.1%
30 Day-6.2%-1.5%5.7%
90 Day-9.6%-2.6%1.4%
1 Year-12.8%-14.5%4.3%0.9%5.9%3.7%
3 Year-24.1%-28.1%17.5%8.2%22.3%16.0%
5 Year-25.5%-31.8%26.3%12.6%42.5%28.9%

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

Undervalued: 500400 (₹60.05) is trading below our estimate of fair value (₹134.32)

Significantly Undervalued: 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 (25.4x) compared to the Electric Utilities industry average (14.5x).

PE vs Market: 500400 is poor value based on its PE Ratio (25.4x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: 500400 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 500400 is overvalued based on its PB Ratio (0.9x) compared to the IN Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is Tata Power forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

43.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500400's forecast earnings growth (43.3% per year) is above the savings rate (7.6%).

Earnings vs Market: 500400's earnings (43.3% per year) are forecast to grow faster than the Indian market (18.2% per year).

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

Revenue vs Market: 500400's revenue (4.1% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: 500400's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 500400's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Tata Power performed over the past 5 years?

52.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500400 has become profitable over the past 5 years, growing earnings by 52.9% per year.

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 (-82.9%) over the past year, making it difficult to compare to the Electric Utilities industry average (-1.8%).


Return on Equity

High ROE: 500400's Return on Equity (5.1%) is considered low.


Return on Assets

ROA vs Industry: 500400's Return on Assets is below or equal to the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: 500400's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tata Power's financial position?


Financial Position Analysis

Short Term Liabilities: 500400's short term assets (₹157.7B) do not cover its short term liabilities (₹286.6B)

Long Term Liabilities: 500400's short term assets (157.7B) do not cover its long term liabilities (351.2B)


Debt to Equity History and Analysis

Debt Level: 500400's debt to equity ratio (237.9%) is considered high

Reducing Debt: 500400's debt to equity ratio has reduced from 262.7% to 237.9% over the past 5 years.

Debt Coverage: 500400's debt is not well covered by operating cash flow (9.4%).

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


Balance Sheet

Inventory Level: 500400 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500400's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

2.16%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%0.6%markettop25%2.5%industryaverage3.9%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500400's dividend (2.16%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500400's dividend (2.16%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).

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 reasonable payout ratio (55%), 500400's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500400's dividends in 3 years are forecast to be well covered by earnings (23.3% payout ratio).


Next Steps

Management

What is the CEO of Tata Power's salary, the management and board of directors tenure and is there insider trading?

8.2yrs

Average management tenure


CEO

Praveer Sinha (57yo)

1.4yrs

Tenure

₹45,992,931

Compensation

Mr. Praveer Sinha has been the Managing Director of Tata Power Co Ltd since September 1, 2007. He serves as Chairman at Tata Power Renewable Energy and also serves as its Non Independent Non-Executive Dire ...


CEO Compensation Analysis

Compensation vs. Market: Praveer has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

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


Management Age and Tenure

8.2yrs

Average Tenure

61.5yo

Average Age

Experienced Management: 500400's management team is seasoned and experienced (8.2 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

56yo

Average Age

Experienced Board: 500400's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Buy₹732,439,89026 Sep 19
Tata Sons Private Limited
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Max Price₹67.08
Buy₹1,768,081,59023 Sep 19
Tata Sons Private Limited
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Max Price₹64.45
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Buy₹851,771,24312 Sep 19
Tata Sons Private Limited
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Max Price₹61.13
Buy₹63,604,23612 Sep 19
Tata Sons Private Limited
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Shares1,100,230
Max Price₹57.81
Sell₹1,171,73826 Jul 19
Pratibha Jain
EntityIndividual
Shares17,450
Max Price₹67.15
Sell₹621,15626 Jul 19
Abhinav Jain
EntityIndividual
Shares9,200
Max Price₹67.52
Buy₹869,42726 Jul 19
Pratibha Jain
EntityIndividual
Shares13,150
Max Price₹66.12
Buy₹465,62026 Jul 19
Abhinav Jain
EntityIndividual
Shares7,000
Max Price₹66.52

Ownership Breakdown


Management Team

  • Shalini Singh

    Chief of Corporate Communications & Sustainability

    • Tenure: 0yrs
  • Praveer Sinha (57yo)

    CEO, MD & Director

    • Tenure: 1.4yrs
    • Compensation: ₹45.99m
  • Gobind Baghasingh (66yo)

    Executive VP & Chief Human Resource Officer

    • Tenure: 12.9yrs
    • Compensation: ₹6.68m
  • A. Bapat

    Head of Corporate Legal

    • Tenure: 0yrs
  • Rahul Shah (52yo)

    Chief of Strategy & New Business Services

    • Tenure: 0yrs
    • Compensation: ₹2.87m
  • Vijay Rajpal (74yo)

    Chief of Aviation

    • Tenure: 13.5yrs
    • Compensation: ₹4.84m
  • G. Rajagopalan (68yo)

    Chief Information Officer

    • Tenure: 0yrs
    • Compensation: ₹3.53m
  • Ramesh Subramanyam (50yo)

    CFO & Compliance Officer

    • Tenure: 5.6yrs
    • Compensation: ₹34.27m
  • Hanoz Mistry

    Company Secretary

    • Tenure: 8.2yrs
    • Compensation: ₹11.86m
  • Anand Agarwal

    Chief Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Ashok Sinha (67yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
  • Praveer Sinha (57yo)

    CEO, MD & Director

    • Tenure: 1.4yrs
    • Compensation: ₹45.99m
  • Natarajan Chandrasekaran (56yo)

    Non-Independent Non-Executive Chairman

    • Tenure: 2.7yrs
    • Compensation: ₹300.00k
  • Banmali Agrawala (56yo)

    Non-Executive Director

    • Tenure: 11.7yrs
    • Compensation: ₹390.00k
  • Anjali Bansal (48yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: ₹5.42m
  • Vibha Padalkar (51yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: ₹5.45m
  • Hemant Bhargava (60yo)

    Non-Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: ₹2.09m
  • Saurabh Agrawal (50yo)

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: ₹420.00k
  • Sanjay Bhandarkar (51yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: ₹6.04m
  • Kesava Chandrasekhar (71yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: ₹4.36m

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: ₹161.745b
  • 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 primarily in India. It operates through two segments, Power and Others. The company generate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.