NSEI:DPSCLTD

Stock Analysis Report

Executive Summary

India Power Corporation Limited, together with its subsidiaries, generates and distributes electricity in India.

Rewards

Pays a reliable dividend of 0.78%

Risk Analysis

Earnings have declined by -13.71% per year over past 5 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap (₹6B)



Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

How has India Power's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DPSCLTD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.4%

DPSCLTD

-2.5%

IN Electric Utilities

-0.4%

IN Market


1 Year Return

-42.9%

DPSCLTD

6.5%

IN Electric Utilities

11.1%

IN Market

Return vs Industry: DPSCLTD underperformed the Indian Electric Utilities industry which returned 6.5% over the past year.

Return vs Market: DPSCLTD underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

DPSCLTDIndustryMarket
7 Day-17.4%-2.5%-0.4%
30 Day-24.3%-5.9%-1.5%
90 Day-26.4%1.5%3.3%
1 Year-42.5%-42.9%10.0%6.5%13.0%11.1%
3 Year-84.8%-85.0%4.3%-3.5%25.3%18.6%
5 Year-60.4%-61.0%15.0%2.5%35.4%23.1%

Price Volatility Vs. Market

How volatile is India Power's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is India Power undervalued compared to its fair value and its price relative to the market?

23.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DPSCLTD (₹6.4) is trading above our estimate of fair value (₹0.42)

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


Price To Earnings Ratio

PE vs Industry: DPSCLTD is poor value based on its PE Ratio (23.4x) compared to the Electric Utilities industry average (10.5x).

PE vs Market: DPSCLTD is poor value based on its PE Ratio (23.4x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DPSCLTD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DPSCLTD is good value based on its PB Ratio (0.5x) compared to the IN Electric Utilities industry average (1x).


Next Steps

Future Growth

How is India Power forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.4%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as India Power has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has India Power performed over the past 5 years?

-13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DPSCLTD has high quality earnings.

Growing Profit Margin: DPSCLTD's current net profit margins (4.8%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: DPSCLTD's earnings have declined by -13.7% per year over the past 5 years.

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

Earnings vs Industry: DPSCLTD had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (12.8%).


Return on Equity

High ROE: DPSCLTD's Return on Equity (2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is India Power's financial position?


Financial Position Analysis

Short Term Liabilities: DPSCLTD's short term assets (₹7.2B) exceed its short term liabilities (₹5.7B).

Long Term Liabilities: DPSCLTD's short term assets (₹7.2B) exceed its long term liabilities (₹5.7B).


Debt to Equity History and Analysis

Debt Level: DPSCLTD's debt to equity ratio (38.1%) is considered satisfactory.

Reducing Debt: DPSCLTD's debt to equity ratio has reduced from 46.6% to 38.1% over the past 5 years.

Debt Coverage: DPSCLTD's debt is well covered by operating cash flow (36.5%).

Interest Coverage: DPSCLTD's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: DPSCLTD's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.5%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DPSCLTD's dividend (0.78%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: DPSCLTD's dividend (0.78%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: DPSCLTD's dividends per share have been stable in the past 10 years.

Growing Dividend: DPSCLTD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.3%), DPSCLTD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Sanjeev Seth (53yo)

2.4yrs

Tenure

₹8,296,000

Compensation

Mr. Sanjeev Seth has been Chief Executive Officer at India Power Corporation Limited since September 1, 2017. Mr. Seth served as the President of Transmission & Distribution at India Power Corporation Limi ...


CEO Compensation Analysis

Compensation vs Market: Sanjeev's total compensation ($USD116.01K) is above average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sanjeev Seth
Chief Executive Officer2.4yrs₹8.30mno data
Somesh Dasgupta
Group President0yrsno datano data
Raghav Kanoria
MD & Additional Director2.7yrs₹13.44mno data
Amit Poddar
Chief Financial Officer1yrs₹3.23mno data
Prashant Kapoor
Compliance Officer & Company Secretary4.5yrs₹3.69mno data
Asok Goswami
Group Head of New Initiatives0yrs₹3.16mno data
Rajat Seksaria
President of Renewable Business0yrsno datano data
Prashant Chaudhury
President of Business Development & Strategy0yrsno datano data
Argha Ghosh
Vice President of Risk & Audit0yrsno datano data
Santanu Roy
Vice President of Legal0yrsno datano data

2.5yrs

Average Tenure

47yo

Average Age

Experienced Management: DPSCLTD's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raghav Kanoria
MD & Additional Director2.7yrs₹13.44mno data
Tantra Thakur
Non-Executive Independent Director6.8yrs₹595.00kno data
Hemant Kanoria
Non-Executive Chairman10.1yrs₹240.00kno data
Nand Khaitan
Non-Executive Independent Director10.1yrs₹660.00kno data
Jyoti Poddar
Non-Executive Non-Independent Director10.1yrs₹245.00kno data
Amit Deb
Non-Executive Independent Director10yrs₹690.00kno data
Debi Patra
Non-Executive Independent Director10.1yrs₹645.00kno data
Dipali Khanna
Non-Executive Independent Director4.9yrs₹550.00kno data

10.0yrs

Average Tenure

67.5yo

Average Age

Experienced Board: DPSCLTD's board of directors are seasoned and experienced ( 10 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

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


Top Shareholders

Company Information

India Power Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: India Power Corporation Limited
  • Ticker: DPSCLTD
  • Exchange: NSEI
  • Founded: 1919
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₹6.330b
  • Shares outstanding: 973.79m
  • Website: https://www.indiapower.com

Location

  • India Power Corporation Limited
  • Plot X1- 2&3
  • Block-EP
  • Kolkata
  • West Bengal
  • 700091
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DPSCLTDNSEI (National Stock Exchange of India)YesOrdinary SharesININRApr 2008

Biography

India Power Corporation Limited, together with its subsidiaries, generates and distributes electricity in India. The company operates 35.2 MW of wind assets in Gujarat and Karnataka; 2 MW of solar asset in West Bengal; and coal fired thermal power plants of 12 MW in Asansol, West Bengal, as well as 1000 MW in Nellore, Andhra Pradesh. It also has a distribution license of approximately 618 square kilometers in Asansol–Raniganj area of West Bengal. In addition, the company offers consultancy, operation, and maintenance services. It serves government utilities and hospitals, as well as industrial, commercial, and residential consumers. The company was formerly known as DPSC Limited and changed its name to India Power Corporation Limited in August 2013. India Power Corporation Limited was founded in 1919 and is headquartered in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:57
End of Day Share Price2020/02/17 00:00
Earnings2019/09/30
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.