The Tata Power Company Limited

NSEI:TATAPOWER Stock Report

Market Cap: ₹1.2t

Tata Power Valuation

Is TATAPOWER 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 TATAPOWER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
₹47.27
Fair Value
676.7% overvalued intrinsic discount
21
Number of Analysts

Below Fair Value: TATAPOWER (₹367.1) is trading above our estimate of fair value (₹47.27)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TATAPOWER. This is calculated by dividing TATAPOWER's market cap by their current earnings.
What is TATAPOWER's PE Ratio?
PE Ratio30.7x
Earnings₹38.23b
Market Cap₹1.17t

Price to Earnings Ratio vs Peers

How does TATAPOWER's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average51.1x
ADANIENSOL Adani Energy Solutions
120x52.4%₹929.1b
TORNTPOWER Torrent Power
30.1x12.5%₹709.1b
POWERGRID Power Grid Corporation of India
16.6x5.4%₹2.6t
SJVN SJVN
37.6x20.4%₹374.9b
TATAPOWER Tata Power
30.7x15.2%₹1.2t

Price-To-Earnings vs Peers: TATAPOWER is good value based on its Price-To-Earnings Ratio (30.7x) compared to the peer average (51.1x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TATAPOWER 30.7xIndustry Avg. 14.8xNo. of Companies14PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TATAPOWER is expensive based on its Price-To-Earnings Ratio (30.7x) compared to the Asian Electric Utilities industry average (14.8x).

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 Ratio30.7x
Fair PE Ratio20.9x

Price-To-Earnings vs Fair Ratio: TATAPOWER is expensive based on its Price-To-Earnings Ratio (30.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).

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 TATAPOWER forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹367.10
₹424.71
+15.7%
20.6%₹583.00₹270.00n/a21
Feb ’26₹368.40
₹441.48
+19.8%
21.4%₹583.00₹270.00n/a21
Jan ’26₹392.35
₹444.05
+13.2%
20.9%₹583.00₹270.00n/a21
Dec ’25₹414.15
₹436.62
+5.4%
22.1%₹583.00₹270.00n/a21
Nov ’25₹445.45
₹439.30
-1.4%
21.6%₹577.00₹270.00n/a22
Oct ’25₹481.25
₹432.07
-10.2%
22.2%₹577.00₹270.00n/a22
Sep ’25₹434.65
₹412.84
-5.0%
21.5%₹522.00₹270.00n/a21
Aug ’25₹464.40
₹382.44
-17.6%
22.4%₹510.00₹240.00n/a22
Jul ’25₹435.40
₹376.36
-13.6%
22.1%₹490.00₹240.00n/a21
Jun ’25₹436.75
₹370.68
-15.1%
21.9%₹490.00₹240.00n/a20
May ’25₹449.25
₹341.40
-24.0%
23.7%₹471.60₹230.00n/a19
Apr ’25₹406.95
₹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₹212.00₹368.4019
Jan ’25₹330.30
₹269.16
-18.5%
21.6%₹400.00₹205.00₹392.3519
Dec ’24₹276.00
₹248.39
-10.0%
15.0%₹308.00₹179.00₹414.1518
Nov ’24₹236.90
₹233.05
-1.6%
15.6%₹301.00₹179.00₹445.4519
Oct ’24₹262.30
₹229.37
-12.6%
14.6%₹301.00₹179.00₹481.2519
Sep ’24₹255.35
₹225.25
-11.8%
13.5%₹275.00₹179.00₹434.6520
Aug ’24₹244.40
₹218.48
-10.6%
14.5%₹271.00₹168.00₹464.4021
Jul ’24₹221.85
₹215.42
-2.9%
14.4%₹271.00₹168.00₹435.4019
Jun ’24₹215.30
₹214.89
-0.2%
14.8%₹271.00₹168.00₹436.7519
May ’24₹201.10
₹222.89
+10.8%
13.7%₹272.00₹168.00₹449.2519
Apr ’24₹190.25
₹223.89
+17.7%
14.7%₹272.00₹168.00₹406.9518
Mar ’24₹204.55
₹227.24
+11.1%
14.0%₹271.00₹168.00₹377.4017
Feb ’24₹205.85
₹233.20
+13.3%
13.8%₹300.00₹180.00₹388.8520
Analyst Price Target
Consensus Narrative from 21 Analysts
₹425.12
Fair Value
13.6% undervalued intrinsic discount
21
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 11:17
End of Day Share Price 2025/02/07 00:00
Earnings2024/12/31
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Tata Power Company Limited is covered by 61 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nitin BhasinAmbit Capital
Satyadeep JainAmbit Capital
null nullAnand Rathi Shares and Stock Brokers Limited