Tata Power (BSE:500400) - Share price, News & Analysis

Q: What is the Fair Price of 500400 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

500400 (₹219) is trading above our estimate of [[fair value]] (₹43.36)

500400 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	4/6
Financial Health	1/6
Dividends	4/6

500400 Stock Overview

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

Rewards

Earnings are forecast to grow 23.76% per year

Earnings grew by 121.9% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 0.8% is not well covered

Tata Power Competitors

Power Grid Corporation of India

BSE:532898

₹1.5t

Torrent Power

NSEI:TORNTPOWER

₹241.7b

CESC

NSEI:CESC

₹104.6b

SJVN

NSEI:SJVN

₹130.1b

Price History & Performance

Summary of all time highs, changes and price drops for Tata Power
Historical stock prices
Current Share Price	₹219.00
52 Week High	₹298.00
52 Week Low	₹168.35
Beta	0.78
1 Month Change	-6.81%
3 Month Change	2.36%
1 Year Change	22.11%
3 Year Change	275.64%
5 Year Change	168.55%
Change since IPO	2,267.57%

Shareholder Returns

	500400	IN Electric Utilities	IN Market
7D	0.7%	-8.8%	-0.6%
1Y	22.1%	44.9%	-3.0%

Return vs Industry: 500400 underperformed the Indian Electric Utilities industry which returned 44.9% over the past year.

Return vs Market: 500400 exceeded the Indian Market which returned -3% over the past year.

Price Volatility

Is 500400's price volatile compared to industry and market?
500400 volatility
500400 Average Weekly Movement	4.0%
Electric Utilities Industry Average Movement	3.9%
Market Average Movement	5.9%
10% most volatile stocks in IN Market	9.2%
10% least volatile stocks in IN Market	3.8%

Stable Share Price: 500400 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 500400's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1915	21,636	Praveer Sinha	https://www.tatapower.com

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 power from hydroelectric and thermal sources, such as coal, gas, and oil.

Tata Power Fundamentals Summary

How do Tata Power's earnings and revenue compare to its market cap?
500400 fundamental statistics
Market Cap	₹699.78b
Earnings (TTM)	₹25.83b
Revenue (TTM)	₹471.79b

27.1x

P/E Ratio

1.5x

P/S Ratio

Is 500400 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
500400 income statement (TTM)
Revenue	₹471.79b
Cost of Revenue	₹336.58b
Gross Profit	₹135.21b
Other Expenses	₹109.38b
Earnings	₹25.83b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.08
Gross Margin	28.66%
Net Profit Margin	5.48%
Debt/Equity Ratio	194.2%

How did 500400 perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

21%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 500400 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500400?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 500400. This is calculated by dividing 500400's market cap by their current preferred multiple.
What is 500400's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹699.78b

500400 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.5x
Enterprise Value/EBITDA	17.2x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does 500400's PE Ratio compare to its peers?

500400 PE Ratio vs Peers

The above table shows the PE ratio for 500400 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.6x
532898 Power Grid Corporation of India	9.9x	2.0%	₹1.5t
TORNTPOWER Torrent Power	32.3x	28.8%	₹241.7b
CESC CESC	7.6x	9.3%	₹104.6b
SJVN SJVN	10.3x	5.4%	₹130.1b
500400 Tata Power	27.1x	23.8%	₹699.8b

Price-To-Earnings vs Peers: 500400 is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does 500400's PE Ratio compare vs other companies in the Asian Electric Utilities Industry?

Price-To-Earnings vs Industry: 500400 is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the Asian Electric Utilities industry average (13.4x)

Price to Earnings Ratio vs Fair Ratio

What is 500400's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500400 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.1x
Fair PE Ratio	22.2x

Price-To-Earnings vs Fair Ratio: 500400 is expensive based on its Price-To-Earnings Ratio (27.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

Share Price vs Fair Value

What is the Fair Price of 500400 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500400 (₹219) is trading above our estimate of fair value (₹43.36)

Significantly Below Fair Value: 500400 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Tata Power forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500400's forecast earnings growth (23.8% per year) is above the savings rate (6.8%).

Earnings vs Market: 500400's earnings (23.8% per year) are forecast to grow faster than the Indian market (18.4% per year).

High Growth Earnings: 500400's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500400's revenue (16.5% per year) is forecast to grow faster than the Indian market (10.6% per year).

High Growth Revenue: 500400's revenue (16.5% 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 (11.4%).

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Past Performance

How has Tata Power performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 500400 has high quality earnings.

Growing Profit Margin: 500400's current net profit margins (5.5%) are higher than last year (3.2%).

Past Earnings Growth Analysis

Earnings Trend: 500400's earnings have declined by 2.9% per year over the past 5 years.

Accelerating Growth: 500400's earnings growth over the past year (121.9%) exceeds its 5-year average (-2.9% per year).

Earnings vs Industry: 500400 earnings growth over the past year (121.9%) exceeded the Electric Utilities industry -16.9%.

Return on Equity

High ROE: 500400's Return on Equity (11.4%) is considered low.

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Financial Health

How is Tata Power's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 500400's short term assets (₹215.9B) do not cover its short term liabilities (₹387.3B).

Long Term Liabilities: 500400's short term assets (₹215.9B) do not cover its long term liabilities (₹474.9B).

Debt to Equity History and Analysis

Debt Level: 500400's net debt to equity ratio (167.8%) is considered high.

Reducing Debt: 500400's debt to equity ratio has reduced from 272.9% to 194.2% over the past 5 years.

Debt Coverage: 500400's debt is not well covered by operating cash flow (12.9%).

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

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.80%

Current Dividend Yield

Dividend Yield vs Market

Tata Power Dividend Yield vs Market

How does Tata Power dividend yield compare to the market?
Segment	Dividend Yield
Company (Tata Power)	0.8%
Market Bottom 25% (IN)	0.4%
Market Top 25% (IN)	1.6%
Industry Average (Electric Utilities)	4.2%
Analyst forecast in 3 Years (Tata Power)	1.1%

Notable Dividend: 500400's dividend (0.8%) is higher than the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: 500400's dividend (0.8%) is low compared to the top 25% of dividend payers in the Indian market (1.63%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.2%), 500400's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 500400 is paying a dividend but the company has no free cash flows.

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Management

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

7.8yrs

Average management tenure

CEO

Praveer Sinha (60 yo)

4.42yrs

Tenure

₹79,296,184

Compensation

Dr. 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 Non Independen...

CEO Compensation Analysis

Praveer Sinha's Compensation vs Tata Power Earnings

How has Praveer Sinha's remuneration changed compared to Tata Power's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	₹26b
Mar 31 2022	₹79m	₹17m	₹22b
Dec 31 2021	n/a	n/a	₹15b
Sep 30 2021	n/a	n/a	₹13b
Jun 30 2021	n/a	n/a	₹12b
Mar 31 2021	₹71m	₹15m	₹10b
Dec 31 2020	n/a	n/a	₹13b
Sep 30 2020	n/a	n/a	₹13b
Jun 30 2020	n/a	n/a	₹13b
Mar 31 2020	₹53m	₹21m	₹13b
Dec 31 2019	n/a	n/a	₹6b
Sep 30 2019	n/a	n/a	₹6b
Jun 30 2019	n/a	n/a	₹7b
Mar 31 2019	₹46m	₹17m	₹23b

Compensation vs Market: Praveer's total compensation ($USD972.40K) is about average for companies of similar size in the Indian market ($USD901.23K).

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

Leadership Team

Experienced Management: 500400's management team is seasoned and experienced (7.8 years average tenure).

Board Members

Experienced Board: 500400's board of directors are considered experienced (5.5 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.

Ownership Breakdown

What is the ownership structure of 500400?
Owner Type	Number of Shares	Ownership Percentage
Individual Insiders	708,162	0.02%
State or Government	19,706,676	0.6%
Public Companies	39,122,725	1.2%
Institutions	705,072,497	22.1%
General Public	979,442,489	30.7%
Private Companies	1,451,286,998	45.4%

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

Top Shareholders

Top 25 shareholders own 67.32% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
45.28%	Tata Sons Private Limited	1,446,751,798	₹316.8b	0%	no data
6.75%	Life Insurance Corporation of India, Asset Management Arm	215,587,679	₹47.2b	-0.07%	0.47%
1.7%	The Vanguard Group, Inc.	54,322,648	₹11.9b	0%	no data
1.68%	ICICI Prudential Asset Management Company Limited	53,526,241	₹11.7b	0%	0.38%
1.35%	BlackRock, Inc.	43,200,938	₹9.5b	-0.62%	no data
1.22%	Tata Steel Limited	39,122,725	₹8.6b	0%	no data
1.16%	Hdfc Standard Life Insurance Company Limited, Asset Management Arm	36,959,888	₹8.1b	-5.31%	2.65%
1.12%	Matthews International Capital Management, LLC	35,686,119	₹7.8b	0%	0.64%
1.03%	GIC Asset Management Company Ltd.	32,995,100	₹7.2b	6.03%	3.37%
0.82%	The New India Assurance Co. Ltd., Asset Management Arm	26,343,839	₹5.8b	0%	4.39%
0.76%	Nippon Life India Asset Management Limited	24,433,343	₹5.4b	0%	0.31%
0.68%	Kotak Mahindra Asset Management Company Limited	21,783,333	₹4.8b	0%	0.35%
0.56%	Franklin Resources, Inc.	17,771,050	₹3.9b	0%	0.02%
0.39%	SBI Funds Management Limited	12,487,734	₹2.7b	80.91%	0.06%
0.37%	Tata Asset Management Limited	11,897,147	₹2.6b	43.57%	0.53%
0.32%	India	10,157,613	₹2.2b	0.02%	no data
0.3%	Investor Education and Protection Fund (IEPF)	9,549,063	₹2.1b	-0.19%	no data
0.3%	Dimensional Fund Advisors LP	9,499,918	₹2.1b	-5.32%	0.01%
0.3%	Aditya Birla Sun Life AMC Limited	9,467,706	₹2.1b	29.09%	0.17%
0.23%	HDFC Asset Management Company Limited	7,497,914	₹1.6b	60.52%	0.05%
0.23%	Axis Asset Management Company Limited	7,296,256	₹1.6b	9.31%	0.11%
0.22%	Invesco Ltd.	6,902,408	₹1.5b	-18.71%	0.01%
0.21%	Tata Investment Corporation Limited	6,847,842	₹1.5b	0%	0.94%
0.17%	UTI Asset Management Company Limited	5,460,911	₹1.2b	11.49%	0.08%
0.17%	Geode Capital Management, LLC	5,428,586	₹1.2b	4.66%	no data

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
500400	BSE (Mumbai Stock Exchange)	Yes	Equity Shares	IN	INR	Jan 1991
TATAPOWER	NSEI (National Stock Exchange of India)	Yes	Equity Shares	IN	INR	Jan 1991
TTP94	BDL (Bourse de Luxembourg)		GDR-REP 900 ORD INR1 REG'S	LU	USD	Mar 2005
TTP09	BDL (Bourse de Luxembourg)		GDR EACH REPR 1 SH 'REG S'	LU	USD	Jul 2009
TPCL	LSE (London Stock Exchange)		GDR EACH REPR 1 SH 'REG S'	GB	USD	Jul 2009

Data	Last Updated (UTC time)
Company Analysis	2022/10/04 00:00
End of Day Share Price	2022/10/04 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31