The Tata Power Company Limited

BSE:500400 Stock Report

Market Cap: ₹1.3t

Tata Power Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 (₹413.55) is trading above our estimate of fair value (₹48.24)

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

Key Valuation Metric

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

Key metric: As 500400 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500400. This is calculated by dividing 500400's market cap by their current earnings.
What is 500400's PE Ratio?
PE Ratio35.3x
Earnings₹37.46b
Market Cap₹1.32t

Price to Earnings Ratio vs Peers

How does 500400's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average60x
ADANIENSOL Adani Energy Solutions
145.1x51.3%₹779.6b
TORNTPOWER Torrent Power
32.5x13.4%₹729.3b
POWERGRID Power Grid Corporation of India
19.9x6.1%₹3.1t
SJVN SJVN
42.3x20.4%₹422.7b
500400 Tata Power
35.3x16.4%₹1.3t

Price-To-Earnings vs Peers: 500400 is good value based on its Price-To-Earnings Ratio (35.3x) compared to the peer average (60x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
500400 35.3xIndustry Avg. 16.6xNo. of Companies15PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500400 is expensive based on its Price-To-Earnings Ratio (35.3x) compared to the Asian Electric Utilities industry average (16.6x).

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 Ratio35.3x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: 500400 is expensive based on its Price-To-Earnings Ratio (35.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).

Analyst Price Targets

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

The above table shows the analyst 500400 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹413.55
₹438.05
+5.9%
22.2%₹583.00₹270.00n/a21
Nov ’25₹445.20
₹439.30
-1.3%
21.6%₹577.00₹270.00n/a22
Oct ’25₹481.00
₹432.07
-10.2%
22.2%₹577.00₹270.00n/a22
Sep ’25₹434.55
₹412.84
-5.0%
21.5%₹522.00₹270.00n/a21
Aug ’25₹464.35
₹382.44
-17.6%
22.4%₹510.00₹240.00n/a22
Jul ’25₹435.15
₹376.36
-13.5%
22.1%₹490.00₹240.00n/a21
Jun ’25₹436.80
₹370.68
-15.1%
21.9%₹490.00₹240.00n/a20
May ’25₹449.10
₹341.40
-24.0%
23.7%₹471.60₹230.00n/a19
Apr ’25₹406.90
₹332.47
-18.3%
22.6%₹450.00₹230.00n/a19
Mar ’25₹377.40
₹330.11
-12.5%
23.1%₹450.00₹230.00n/a19
Feb ’25₹388.85
₹289.89
-25.4%
24.5%₹450.00₹212.00n/a19
Jan ’25₹329.95
₹269.16
-18.4%
21.6%₹400.00₹205.00n/a19
Dec ’24₹275.75
₹248.39
-9.9%
15.0%₹308.00₹179.00n/a18
Nov ’24₹236.90
₹233.05
-1.6%
15.6%₹301.00₹179.00₹445.2019
Oct ’24₹262.20
₹229.37
-12.5%
14.6%₹301.00₹179.00₹481.0019
Sep ’24₹255.20
₹225.25
-11.7%
13.5%₹275.00₹179.00₹434.5520
Aug ’24₹244.40
₹218.48
-10.6%
14.5%₹271.00₹168.00₹464.3521
Jul ’24₹221.80
₹215.42
-2.9%
14.4%₹271.00₹168.00₹435.1519
Jun ’24₹215.25
₹214.89
-0.2%
14.8%₹271.00₹168.00₹436.8019
May ’24₹201.15
₹222.89
+10.8%
13.7%₹272.00₹168.00₹449.1019
Apr ’24₹190.20
₹223.89
+17.7%
14.7%₹272.00₹168.00₹406.9018
Mar ’24₹204.40
₹227.24
+11.2%
14.0%₹271.00₹168.00₹377.4017
Feb ’24₹205.85
₹233.20
+13.3%
13.8%₹300.00₹180.00₹388.8520
Jan ’24₹207.70
₹233.05
+12.2%
13.0%₹300.00₹180.00₹329.9519
Dec ’23₹224.85
₹232.00
+3.2%
13.4%₹300.00₹180.00₹275.7519
Nov ’23₹230.60
₹233.22
+1.1%
13.5%₹300.00₹180.00₹236.9018

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

Discover undervalued companies

Reliance Infrastructure

₹101.8b

An infrastructure company, generates, transmits, and distributes electrical power to residential, industrial, commercial, and other consumers in India.

RELINFRA

₹257.65

7D

-0.4%

1Y

48.5%

PTC India

₹48.6b

Engages in the trading of power in India, Nepal, Bhutan, and Bangladesh.

532524

₹164.40

7D

-1.4%

1Y

4.8%

PTC India

₹48.6b

Engages in the trading of power in India, Nepal, Bhutan, and Bangladesh.

PTC

₹164.29

7D

-1.4%

1Y

4.8%