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TATA

Tata Power NSEI:TATAPOWER Stock Report

Last Price

₹208.15

Market Cap

₹664.2b

7D

6.8%

1Y

69.8%

Updated

27 Jun, 2022

Data

Company Financials +
TATAPOWER fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends4/6

TATAPOWER Stock Overview

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

Tata Power Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tata Power
Historical stock prices
Current Share Price₹208.15
52 Week High₹298.05
52 Week Low₹118.40
Beta0.69
1 Month Change-7.35%
3 Month Change-12.94%
1 Year Change69.85%
3 Year Change194.41%
5 Year Change158.89%
Change since IPO1,284.90%

Recent News & Updates

Jun 02
Tata Power (NSE:TATAPOWER) Will Pay A Larger Dividend Than Last Year At ₹1.75

Tata Power (NSE:TATAPOWER) Will Pay A Larger Dividend Than Last Year At ₹1.75

The Tata Power Company Limited ( NSE:TATAPOWER ) has announced that it will be increasing its dividend on the 6th of...

May 10
Tata Power (NSE:TATAPOWER) Is Increasing Its Dividend To ₹1.75

Tata Power (NSE:TATAPOWER) Is Increasing Its Dividend To ₹1.75

The board of The Tata Power Company Limited ( NSE:TATAPOWER ) has announced that it will be increasing its dividend on...

Shareholder Returns

TATAPOWERIN Electric UtilitiesIN Market
7D6.8%2.2%2.3%
1Y69.8%45.3%-0.9%

Return vs Industry: TATAPOWER exceeded the Indian Electric Utilities industry which returned 45.3% over the past year.

Return vs Market: TATAPOWER exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is TATAPOWER's price volatile compared to industry and market?
TATAPOWER volatility
TATAPOWER Average Weekly Movement6.7%
Electric Utilities Industry Average Movement5.0%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: TATAPOWER is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TATAPOWER's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191521,636Praveer Sinhahttps://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?
TATAPOWER fundamental statistics
Market Cap₹664.15b
Earnings (TTM)₹21.80b
Revenue (TTM)₹428.16b

30.5x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TATAPOWER income statement (TTM)
Revenue₹428.16b
Cost of Revenue₹290.86b
Gross Profit₹137.30b
Other Expenses₹115.50b
Earnings₹21.80b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.82
Gross Margin32.07%
Net Profit Margin5.09%
Debt/Equity Ratio180.7%

How did TATAPOWER perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

26%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

TATAPOWER 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/Revenue2.7x
Enterprise Value/EBITDA15.3x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

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

TATAPOWER PE Ratio vs Peers
The above table shows the PE ratio for TATAPOWER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average65.8x
532898 Power Grid Corporation of India
8.8x-4.9%₹1.5t
TORNTPOWER Torrent Power
49.7x30.6%₹222.3b
539254 Adani Transmission
198.4x9.3%₹2.4t
CESC CESC
6.9x10.0%₹93.2b
TATAPOWER Tata Power
30.5x17.0%₹664.2b

Price-To-Earnings vs Peers: TATAPOWER is good value based on its Price-To-Earnings Ratio (30.5x) compared to the peer average (65.8x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: TATAPOWER is expensive based on its Price-To-Earnings Ratio (30.5x) compared to the Indian Electric Utilities industry average (27.8x)


Price to Earnings Ratio vs Fair Ratio

What is TATAPOWER'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.

TATAPOWER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.5x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: TATAPOWER is expensive based on its Price-To-Earnings Ratio (30.5x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).


Share Price vs Fair Value

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

Below Fair Value: TATAPOWER (₹208.15) is trading below our estimate of fair value (₹1041.93)

Significantly Below Fair Value: TATAPOWER is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: TATAPOWER is poor value based on its PEG Ratio (1.8x)


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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

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TATAPOWER's forecast earnings growth (17% per year) is above the savings rate (6.7%).

Earnings vs Market: TATAPOWER's earnings (17% per year) are forecast to grow slower than the Indian market (17.4% per year).

High Growth Earnings: TATAPOWER's earnings are forecast to grow, but not significantly.

Revenue vs Market: TATAPOWER's revenue (9.7% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: TATAPOWER's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TATAPOWER's Return on Equity is forecast to be low in 3 years time (13.2%).


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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


-3.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TATAPOWER has high quality earnings.

Growing Profit Margin: TATAPOWER's current net profit margins (5.1%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: TATAPOWER's earnings have declined by 3.5% per year over the past 5 years.

Accelerating Growth: TATAPOWER's earnings growth over the past year (117.5%) exceeds its 5-year average (-3.5% per year).

Earnings vs Industry: TATAPOWER earnings growth over the past year (117.5%) exceeded the Electric Utilities industry 3.3%.


Return on Equity

High ROE: TATAPOWER's Return on Equity (9.8%) 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: TATAPOWER's short term assets (₹215.9B) do not cover its short term liabilities (₹387.3B).

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


Debt to Equity History and Analysis

Debt Level: TATAPOWER's net debt to equity ratio (154.3%) is considered high.

Reducing Debt: TATAPOWER's debt to equity ratio has reduced from 283% to 180.7% over the past 5 years.

Debt Coverage: TATAPOWER's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: TATAPOWER's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TATAPOWER's dividend (0.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: TATAPOWER's dividend (0.84%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.7%), TATAPOWER's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: TATAPOWER 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?

13.2yrs

Average management tenure


CEO

Praveer Sinha (59 yo)

4.08yrs

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

Compensation vs Market: Praveer's total compensation ($USD1.01M) is about average for companies of similar size in the Indian market ($USD900.69K).

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


Leadership Team

Experienced Management: TATAPOWER's management team is seasoned and experienced (13.2 years average tenure).


Board Members

Experienced Board: TATAPOWER's board of directors are considered experienced (5.2 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

The Tata Power Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: The Tata Power Company Limited
  • Ticker: TATAPOWER
  • Exchange: NSEI
  • Founded: 1915
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: ₹664.151b
  • Shares outstanding: 3.20b
  • Website: https://www.tatapower.com

Number of Employees


Location

  • The Tata Power Company Limited
  • Bombay House
  • 24, Homi Mody Street
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.