Tata Power

BSE:500400

Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

500400

BSE

₹197B

Market Cap

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Last updated 2019/03/20 12:34

Company description

The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity primarily in India. The last earnings update was 51 days ago. More info.

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500400 Share Price and Events

7 Day Returns

-2.3%

BSE:500400

0.9%

IN Electric Utilities

0.3%

IN Market

1 Year Returns

-9.8%

BSE:500400

-6.3%

IN Electric Utilities

2.4%

IN Market

500400 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Tata Power (500400)	-2.3%	10.1%	-10.1%	-9.8%	14.9%	-11.8%
IN Electric Utilities	0.9%	7.1%	-3.6%	-6.3%	32.4%	47.7%
IN Market	0.3%	8%	1.6%	2.4%	44%	81.3%

1 Year Return vs Industry and Market

500400 underperformed the Electric Utilities industry which returned -6.3% over the past year.
500400 underperformed the Market in India which returned 2.4% over the past year.

Price Volatility

500400

Industry

5yr Volatility vs Market

Related Companies

Value

Is Tata Power undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Tata Power to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tata Power.

BSE:500400 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 15 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	14.4%
Perpetual Growth Rate	10-Year IN Government Bond Rate	7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:500400
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year IN Govt Bond Rate	7.6%
Equity Risk Premium	S&P Global	8.6%
Electric Utilities Unlevered Beta	Simply Wall St/ S&P Global	0.24
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.241 (1 + (1- 35%) (228.18%))	0.73
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.8
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 7.55% + (0.8 * 8.6%)	14.43%

Discounted Cash Flow Calculation for BSE:500400 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tata Power is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:500400 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (INR, Millions)	Source	Present Value Discounted (@ 14.43%)
2019	41,757.00	Analyst x6	36,491.30
2020	35,883.75	Analyst x4	27,404.26
2021	41,593.75	Analyst x4	27,759.29
2022	46,830.27	Est @ 12.59%	27,312.85
2023	52,018.02	Est @ 11.08%	26,512.72
2024	57,229.94	Est @ 10.02%	25,490.83
2025	62,540.08	Est @ 9.28%	24,343.28
2026	68,018.61	Est @ 8.76%	23,137.08
2027	73,730.15	Est @ 8.4%	21,917.25
2028	79,733.93	Est @ 8.14%	20,713.06
Present value of next 10 years cash flows			₹261,081.93

BSE:500400 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = ₹79,733.93 × (1 + 7.55%) ÷ (14.43% – 7.55%)	₹1,246,422.13
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = ₹1,246,422.13 ÷ (1 + 14.43%)¹⁰	₹323,792.04

BSE:500400 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = ₹261,081.93 + ₹323,792.04	₹584,873.97
Equity Value per Share (INR)	= Total value / Shares Outstanding = ₹584,873.97 / 2,704.77	₹216.24

BSE:500400 Discount to Share Price
	Calculation	Result
Value per share (INR)	From above.	₹216.24
Current discount	Discount to share price of ₹72.00 = -1 x (₹72.00 - ₹216.24) / ₹216.24	66.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Tata Power is available for.

^>50%

Share price is ₹72 vs Future cash flow value of ₹216.24

Current Discount Checks

For Tata Power to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Tata Power's share price is below the future cash flow value, and at a moderate discount (> 20%).
Tata Power's share price is below the future cash flow value, and at a substantial discount (> 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tata Power's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Tata Power's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

BSE:500400 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in INR	₹13.65
BSE:500400 Share Price **	BSE (2019-03-20) in INR	₹72
India Electric Utilities Industry PE Ratio	Median Figure of 7 Publicly-Listed Electric Utilities Companies	11.75x
India Market PE Ratio	Median Figure of 2,728 Publicly-Listed Companies	16.54x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tata Power.

BSE:500400 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= BSE:500400 Share Price ÷ EPS (both in INR) = 72 ÷ 13.65	5.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Tata Power is good value based on earnings compared to the IN Electric Utilities industry average.
Tata Power is good value based on earnings compared to the India market.

Price based on expected Growth

Does Tata Power's expected growth come at a high price?

Raw Data

BSE:500400 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	5.27x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts	-17.2%per year
India Electric Utilities Industry PEG Ratio	Median Figure of 6 Publicly-Listed Electric Utilities Companies	0.89x
India Market PEG Ratio	Median Figure of 596 Publicly-Listed Companies	1.28x

*Line of best fit is calculated by linear regression .

BSE:500400 PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 5.27x ÷ -17.2%	-0.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Tata Power earnings are not expected to grow next year, we can't assess if its growth is good value.

Price based on value of assets

What value do investors place on Tata Power's assets?

Raw Data

BSE:500400 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in INR	₹62.35
BSE:500400 Share Price *	BSE (2019-03-20) in INR	₹72
India Electric Utilities Industry PB Ratio	Median Figure of 10 Publicly-Listed Electric Utilities Companies	1.03x
India Market PB Ratio	Median Figure of 3,614 Publicly-Listed Companies	1.11x

BSE:500400 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= BSE:500400 Share Price ÷ Book Value per Share (both in INR) = 72 ÷ 62.35	1.15x

* Primary Listing of Tata Power.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Tata Power is overvalued based on assets compared to the IN Electric Utilities industry average.

Show me more potentially undervalued companies in the Electric Utilities industry

Value checks

We assess Tata Power's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

How is Tata Power expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

-17.2%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Tata Power expected to grow at an attractive rate?

Tata Power's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.

Growth vs Market Checks

Tata Power's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
Tata Power's revenue growth is positive but not above the India market average.

Annual Growth Rates Comparison

Raw Data

BSE:500400 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
BSE:500400 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts	-17.2%
BSE:500400 Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts	3.6%
India Electric Utilities Industry Earnings Growth Rate	Market Cap Weighted Average	16.3%
India Electric Utilities Industry Revenue Growth Rate	Market Cap Weighted Average	13.2%
India Market Earnings Growth Rate	Market Cap Weighted Average	18.5%
India Market Revenue Growth Rate	Market Cap Weighted Average	11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

BSE:500400 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (2 months ago)	See Below
Future Estimates	Average of up to 15 Analyst Estimates (S&P Global)	See Below

All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

BSE:500400 Future Estimates Data
Date (Data in INR Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-03-31	335,565	68,986	20,274	11
2020-03-31	324,730	65,332	16,897	13
2019-03-31	311,491	71,344	27,232	13

BSE:500400 Past Financials Data
Date (Data in INR Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	320,360		35,936
2018-09-30	306,883		40,078
2018-06-30	302,296		39,194
2018-03-31	293,310	63,639	24,362
2017-12-31	288,426		5,178
2017-09-30	284,511		5,752
2017-06-30	280,280		8,368
2017-03-31	275,876	70,142	7,815
2016-12-31	360,080		11,079
2016-09-30	366,774		9,420
2016-06-30	371,348		5,099
2016-03-31	294,943	74,151	5,504

*GAAP earnings excluding extraordinary items.

High Growth Checks

Tata Power's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Tata Power's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

BSE:500400 Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (2 months ago)	See Below
Future Estimates	Average of up to 15 Analyst Estimates (S&P Global)	See Below

All data from Tata Power Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:500400 Future Estimates Data
Date (Data in INR Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-03-31	7.75	10.50	5.50	8.00
2020-03-31	6.37	7.70	4.80	9.00
2019-03-31	4.68	5.60	3.00	5.00

BSE:500400 Past Financials Data
Date (Data in INR Millions)	EPS *
2018-12-31	13.65
2018-09-30	15.49
2018-06-30	14.05
2018-03-31	9.00
2017-12-31	1.90
2017-09-30	2.11
2017-06-30	2.85
2017-03-31	2.89
2016-12-31	4.27
2016-09-30	3.88
2016-06-30	1.68
2016-03-31	2.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Tata Power is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).

Future performance checks

We assess Tata Power's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tata Power has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

How has Tata Power performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Tata Power's growth in the last year to its industry (Electric Utilities).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Tata Power has delivered over 20% year on year earnings growth in the past 5 years.
Tata Power's 1-year earnings growth exceeds its 5-year average (594% vs 67.2%)
Tata Power's earnings growth has exceeded the IN Electric Utilities industry average in the past year (594% vs 10%).

Earnings and Revenue History

Tata Power's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Tata Power Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:500400 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	320,360.40	35,936.10	14,679.90
2018-09-30	306,883.40	40,078.40	14,673.70
2018-06-30	302,296.30	39,193.90	13,980.30
2018-03-31	293,310.00	24,362.40	14,880.90
2017-12-31	288,425.50	5,178.40	15,839.30
2017-09-30	284,511.40	5,751.80	15,437.80
2017-06-30	280,280.40	8,367.70	13,178.90
2017-03-31	275,875.90	7,814.50	13,991.10
2016-12-31	360,079.80	11,079.10	19,282.10
2016-09-30	366,773.90	9,419.60	19,311.20
2016-06-30	371,348.30	5,098.50	19,324.80
2016-03-31	294,943.00	5,503.80	13,804.50
2015-12-31	366,519.60	5,493.60	33,020.10
2015-09-30	358,510.90	7,226.40	32,630.00
2015-06-30	348,939.00	3,975.80	32,312.10
2015-03-31	337,275.70	449.50	19,513.40
2014-12-31	348,409.90	-2,585.20	29,849.30
2014-09-30	347,430.20	-5,311.70	29,403.60
2014-06-30	350,958.30	-3,784.50	28,685.00
2014-03-31	358,731.00	-3,818.50	30,020.70
2013-12-31	358,516.80	-1,399.00	25,622.20
2013-09-30	361,872.50	-3,939.10	25,728.50
2013-06-30	351,196.30	-5,526.80	26,107.70
2013-03-31	330,254.30	-2,920.50	25,946.70
2012-12-31	311,411.20	-9,901.50	25,244.30
2012-09-30	287,953.10	-3,632.80	25,012.10
2012-06-30	273,941.50	-14,668.00	24,584.40
2012-03-31	260,014.00	-11,822.90	23,918.30

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Tata Power has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Tata Power used its assets more efficiently than the IN Electric Utilities industry average last year based on Return on Assets.
Tata Power's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Show me more strong past performing companies in the Electric Utilities industry

Past performance checks

We assess Tata Power's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tata Power has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

How is Tata Power's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tata Power's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Tata Power's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Tata Power's long term commitments exceed its cash and other short term assets.

Balance sheet

This treemap shows a more detailed breakdown of Tata Power's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.3x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Tata Power Company Filings, last reported 2 months ago.

BSE:500400 Past Debt and Equity Data
Date (Data in INR Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	205,925.30	450,528.30	23,144.70
2018-09-30	205,925.30	450,528.30	23,144.70
2018-06-30	192,604.90	411,835.90	27,223.10
2018-03-31	192,604.90	485,893.20	15,983.70
2017-12-31	170,334.70	396,137.10	21,623.60
2017-09-30	170,334.70	396,137.10	21,623.60
2017-06-30	151,484.60	414,227.50	29,654.80
2017-03-31	172,458.90	488,154.10	19,501.20
2016-12-31	182,463.10	421,486.70	24,091.00
2016-09-30	182,463.10	421,486.70	24,091.00
2016-06-30	178,395.30	401,209.80	16,950.00
2016-03-31	155,635.70	388,485.90	9,989.20
2015-12-31	178,673.80	348,143.00	14,114.40
2015-09-30	178,673.80	348,143.00	14,114.40
2015-06-30	171,578.70	408,436.80	21,180.50
2015-03-31	171,578.70	406,085.10	21,006.50
2014-12-31	171,499.20	358,537.70	24,704.00
2014-09-30	171,499.20	358,537.70	24,704.00
2014-06-30	150,971.20	402,671.30	19,084.10
2014-03-31	150,971.20	402,671.30	19,084.10
2013-12-31	142,050.60	395,471.60	21,810.20
2013-09-30	142,050.60	395,471.60	21,810.20
2013-06-30	134,073.10	394,172.80	24,609.30
2013-03-31	149,073.10	379,172.80	24,609.30
2012-12-31
2012-09-30
2012-06-30	134,977.40	353,705.90	45,361.90
2012-03-31	133,613.30	353,705.90	43,937.10

Tata Power's level of debt (218.8%) compared to net worth is high (greater than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (278.3% vs 218.8% today).
Debt is not well covered by operating cash flow (14.1%, less than 20% of total debt).
Interest payments on debt are not well covered by earnings (EBIT is 1.2x annual interest expense, ideally 3x coverage).

Financial health checks

We assess Tata Power's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

1.81%

Current annual income from Tata Power dividends. Estimated to be 2.02% next year.

If you bought ₹2,000 of Tata Power shares you are expected to receive ₹36 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Tata Power's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
Tata Power's dividend is below the markets top 25% of dividend payers in India (1.89%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

BSE:500400 Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 15 Analyst Estimates (S&P Global)	See Below
India Electric Utilities Industry Average Dividend Yield	Market Cap Weighted Average of 8 Stocks	3%
India Market Average Dividend Yield	Market Cap Weighted Average of 1399 Stocks	1.3%
India Minimum Threshold Dividend Yield	10th Percentile	0.3%
India Bottom 25% Dividend Yield	25th Percentile	0.5%
India Top 25% Dividend Yield	75th Percentile	1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:500400 Future Dividends Estimate Data
Date (Data in ₹)	Dividend per Share (annual)	Avg. No. Analysts
2021-03-31	1.48	11.00
2020-03-31	1.49	13.00
2019-03-31	1.37	9.00

BSE:500400 Past Annualized Dividends Data
Date (Data in ₹)	Dividend per share (annual)	Avg. Yield (%)
2018-05-02	1.300	1.768
2017-05-19	1.300	1.543
2016-05-23	1.300	1.676
2015-07-07	1.300	1.991
2015-05-19	1.300	1.763
2014-05-29	1.250	1.429
2013-05-30	1.150	1.406
2012-08-08	1.250	1.249
2012-05-22	1.250	1.301
2011-05-19	1.250	1.187
2010-05-24	1.200	0.924
2009-06-01	1.150	0.892
2009-03-23	1.050	1.182

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Dividends per share have been stable in the past 10 years.
Dividends per share have increased over the past 10 years.

Current Payout to shareholders

What portion of Tata Power's earnings are paid to the shareholders as a dividend.

Dividends paid are thoroughly covered by earnings (10.5x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be well covered by earnings (4.7x coverage).

Show me more dividend paying companies in the Electric Utilities industry

Income/ dividend checks

We assess Tata Power's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Tata Power afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Praveer Sinha

COMPENSATION	₹8,342,718
AGE	56
TENURE AS CEO	0.8 years

CEO Bio

Mr. Praveer Sinha has been the Managing Director of Tata Power Co Ltd since September 1, 2007. He was the Chief Executive Officer of Tata Power Co Ltd since September 1, 2007 until April 30, 2023. He is Director at Tata Power Co Ltd. Mr. Sinha serves as an Executive officer of Udupi Power Corporation Limited. Mr. Sinha served as the Chief Executive Officer and Managing Director at Tata Power Delhi Distribution Limited until May 1, 2018. He served as the Project Director of Eastern Region Projects of Tata Power Co. Ltd. since joining on September 5, 2007. Mr. Sinha served as Executive officer of Nagarjuna Power Corporation Ltd. He served as CPO of Power of Nagarjuna Fertilizers and Chemicals Limited. Mr. Sinha served as an Executive of Lanco Infratech Limited. He served as Senior Project Manager of Jai Prakash Steel Ltd. He served as Chief Operating Officer of Nagarjuna Power Corporation Ltd. Mr. Sinha has total experience of 23 years in the fields of Marketing and Projects in the Steel and Power Sectors in reputed companies such as Crompton Greaves Ltd. and Jai Prakash Industries Ltd. Mr. Sinha has also worked in the areas of corporate planning and co-ordination with various agencies in Project Development. He has been Director at Tata Power Trading Company Ltd since May 10, 2018. He serves as Executive Director at Tata Power Delhi Distribution Limited. He serves as Member of Audit Committee at Industrial Energy Private Limited. He is a Member of many professional bodies. Mr. Sinha holds BE (Electrical Eng), M.Tech in Management & systems from IIT, Delhi, Master in Business Law from NLSIU, Bangalore.

CEO Compensation

Insufficient data for Praveer to compare compensation growth.
Insufficient data for Praveer to establish whether their remuneration is reasonable compared to companies of similar size in India.

Management Team Tenure

Average tenure and age of the Tata Power management team in years:

Average Tenure

Average Age

The average tenure for the Tata Power management team is over 5 years, this suggests they are a seasoned and experienced team.

Management Team

Ramesh Subramanyam

TITLE

CFO & Compliance Officer

COMPENSATION

₹31M

AGE

49

TENURE

5 yrs

Ashok Sethi

56

TENURE

0.8 yrs

G. Rajagopalan

TITLE

Chief Information Officer

COMPENSATION

₹4M

AGE

67

Anand Agarwal

TITLE

Chief Investor Relations Officer

A. Bapat

TITLE

Head of Corporate Legal

Shalini Singh

TITLE

Chief of Corporate Communications

Gobind Baghasingh

TITLE

Executive VP & Chief Human Resource Officer

COMPENSATION

₹7M

AGE

65

TENURE

12.3 yrs

Rahul Shah

TITLE

Chief of Strategy & New Business Services

COMPENSATION

₹3M

AGE

51

Board of Directors Tenure

Average tenure and age of the Tata Power board of directors in years:

2.4

Average Tenure

55.5

Average Age

The average tenure for the Tata Power board of directors is less than 3 years, this suggests a new board.

1.8 yrs

Who owns this company?

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Role		Start	End	Shares	Max Price (₹)	Value (₹)

Management checks

We assess Tata Power's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

The Tata Power Company Limited (BOM:500400) Should Be In Your Dividend Portfolio, Here's Why

If you are an income investor, then The Tata Power Company Limited (BOM:500400) should be on your radar. … The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity primarily in India. … Over the past 10 years, the ₹210.84b market cap company has been growing its dividend payments, from ₹0.95 to ₹1.3.

Simply Wall St - 9 months ago – Full article

Company Info

Description

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 generates electricity primarily through coal, gas and oil, hydro, wind, solar, and waste heat sources. Its network comprises approximately 1,188 circuit kilometers of transmission lines; and 21 receiving stations. The company also distributes and trades power; and mines coal. In addition, it manufactures and sells solar photovoltaic cells and modules; and provides engineering, procurement, and construction services, as well as GIS testing, electrical testing, etc., to various clients. Further, the company is involved in project contracts/infrastructure management, and investment and property development activities, as well as operation of electric vehicle charging stations. As of October 15, 2018, it had an installed capacity of 10,857 MW. The Tata Power Company Limited was founded in 1915 and is based in Mumbai, India.

Details

Name:	The Tata Power Company Limited
Ticker:	500400
Exchange:	BSE
Founded:	1915
Market Cap:	₹197,448,466,230
Shares outstanding:	2,704,773,510
Website:	http://www.tatapower.com
Address:	The Tata Power Company Limited Corporate Center Block A, 34 Sant Tukaram Road, Mumbai, Maharashtra, 400009, India

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
BSE	500400	Equity Shares	Mumbai Stock Exchange	IN	INR	02. Jan 1991
NSEI	TATAPOWER	Equity Shares	National Stock Exchange of India	IN	INR	02. Jan 1991
NSEI	500400	INR1	National Stock Exchange of India	IN	INR	01. Jan 1992
BDL	TTP94	GDR-REP 900 ORD INR1 REG'S	Bourse de Luxembourg	LU	USD	18. Mar 2005
BDL	TTP09	GDR EACH REPR 10 SH 'REG S	Bourse de Luxembourg	LU	USD	24. Jul 2009
LSE	TPCL	GDR EACH REPR 10 SH 'REG S	London Stock Exchange	GB	USD	24. Jul 2009

Number of employees

Current staff

Tata Power employees.

Industry

Industry:	Electric Utilities
Sector:	Utilities

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/03/20 12:34
End of day share price update:	2019/03/20 00:00
Last estimates confirmation:	2019/03/18
Last earnings filing:	2019/01/28
Last earnings reported:	2018/12/31
Last annual earnings reported:	2018/03/31

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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Copyright © 2019, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2019)

Tata Power

500400 Share Price and Events

7 Day Returns

1 Year Returns

500400 Shareholder Return

1 Year Return vs Industry and Market

Price Volatility

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Value

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Current Discount

Current Discount Checks

PRICE RELATIVE TO MARKET

Price based on past earnings

Price based on expected Growth

Price based on value of assets

Value checks

Future Performance

Earnings growth vs Low Risk Savings

Growth vs Market Checks

Annual Growth Rates Comparison

Analysts growth expectations

High Growth Checks

Past and Future Earnings per Share

Performance in 3 years

Future performance checks

Past Performance

Past earnings growth

Past Earnings growth analysis

Earnings and Revenue History

Performance last year

Past performance checks

Health

Net Worth

Balance sheet

Assets

Liabilities and shares

Historical Debt

Financial health checks

Dividends

Annual Dividend Income

Dividend Amount

Annualized Historical and Future Dividends

Current Payout to shareholders

Future Payout to shareholders

Income/ dividend checks

Management

CEO

CEO Bio

CEO Compensation

Management Team Tenure

Management Team

Ramesh Subramanyam

CFO & Compliance Officer

₹31M

49

5 yrs

Ashok Sethi

COO & Executive Director

₹37M

64

4.8 yrs

Hanoz Mistry

Company Secretary

₹10M

7.6 yrs

Praveer Sinha

CEO, MD & Director

₹8M

56

0.8 yrs

G. Rajagopalan

Chief Information Officer

₹4M

67

Anand Agarwal

Chief Investor Relations Officer