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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500400 | NSE: TATAPOWER

Tata Power Company Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:30 pm

Market Cap 1,38,422 Cr.
Current Price 433
High / Low495/251
Stock P/E36.5
Book Value 105
Dividend Yield0.46 %
ROCE11.1 %
ROE11.3 %
Face Value 1.00
PEG Ratio1.50

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Tata Power Company Ltd

Competitors of Tata Power Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
GMR Power & Urban Infra Ltd 7,999 Cr. 112169/36.6 11.10.00 %11.4 %% 5.00
Gita Renewable Energy Ltd 68.7 Cr. 167310/107215 32.80.00 %2.71 %1.91 % 10.0
SJVN Ltd 43,802 Cr. 111170/75.047.4 37.21.61 %4.99 %5.90 % 10.0
Rattanindia Power Ltd 7,475 Cr. 13.921.1/7.90 8.300.00 %8.39 %% 10.0
PTC India Ltd 5,344 Cr. 181255/14810.4 1744.32 %9.64 %9.57 % 10.0
Industry Average72,529.53 Cr292.6973.4994.180.76%8.97%11.23%8.14

All Competitor Stocks of Tata Power Company Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7,59810,36310,1329,81010,91311,96014,49514,03114,12912,45415,21315,73814,651
Expenses5,8648,9377,9848,4819,27910,09112,81212,27011,81010,52612,50012,96712,234
Operating Profit1,7341,4252,1491,3291,6341,8691,6831,7602,3191,9282,7132,7712,417
OPM %23%14%21%14%15%16%12%13%16%15%18%18%16%
Other Income3915025821,026865621,2271,5021,4971,3528775671,092
Interest9668909459469531,0151,0261,0521,0981,1961,2211,1821,094
Depreciation738663747771758846822838853926893926926
Profit before tax4213731,038638788711,0621,3731,8641,1581,4761,2311,489
Tax %24%-29%55%21%30%-794%17%32%44%19%23%17%28%
Net Profit3184814665065526328849351,0529391,1411,0171,076
EPS in Rs0.781.231.221.321.331.572.492.562.962.433.042.742.98

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales26,06933,17735,72633,59329,49427,58826,84029,88129,13632,70342,81655,10958,056
Expenses21,18527,58328,81027,29227,38922,11424,54526,81123,84725,74735,78547,38148,226
Operating Profit4,8845,5956,9166,3012,1055,4732,2953,0705,2896,9567,0317,7289,830
OPM %19%17%19%19%7%20%9%10%18%21%16%14%17%
Other Income-1,5153752291,0564,0601,2976,5867,1863,7961,7392,4865,5403,888
Interest1,5272,6423,4403,6993,2363,3653,7614,1704,4944,0103,8594,3724,693
Depreciation1,3352,0522,7302,1741,6491,9562,3462,3932,6342,7453,1223,4393,672
Profit before tax5071,2779751,4841,2811,4502,7733,6931,9581,9412,5355,4575,353
Tax %291%92%103%72%53%24%6%29%33%26%15%30%
Net Profit-898123124577861,1002,6112,6061,3161,4392,1563,8104,173
EPS in Rs-4.02-0.32-0.960.622.453.318.908.713.763.535.4510.4411.19
Dividend Payout %-27%-319%-114%210%53%39%15%15%41%44%32%19%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)113.70%-90.24%3708.33%71.99%39.95%137.36%-0.19%-49.50%9.35%49.83%76.72%
Change in YoY Net Profit Growth (%)0.00%-203.94%3798.58%-3636.34%-32.04%97.41%-137.56%-49.31%58.85%40.48%26.89%

Tata Power Company Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:16%
3 Years:23%
TTM:10%
Compounded Profit Growth
10 Years:77%
5 Years:74%
3 Years:44%
TTM:11%
Stock Price CAGR
10 Years:16%
5 Years:49%
3 Years:19%
1 Year:56%
Return on Equity
10 Years:7%
5 Years:9%
3 Years:11%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital237237270270270270270270320320320320
Reserves12,09812,16414,04811,36312,94416,12918,03519,29622,00322,12228,46832,036
Borrowings37,88240,17340,60738,84948,81548,58948,50651,93646,70851,19552,92353,689
Other Liabilities17,03818,81020,26019,57520,79916,90317,26218,17229,62538,91346,38653,010
Total Liabilities67,25771,38375,18570,05782,82981,89284,07389,67498,655112,550128,096139,054
Fixed Assets41,35343,39444,72636,41446,59544,65644,30547,66652,17957,38961,74767,210
CWIP2,3583,3893,3231,3452,1781,6532,5761,6123,2704,6355,37611,561
Investments3,1203,0193,44511,78511,87312,42913,54214,53513,14914,16016,67016,316
Other Assets20,42621,58223,69220,51322,18423,15423,65125,86130,05636,36544,30343,968
Total Assets67,25771,38375,18570,05782,82981,89284,07389,67498,655112,550128,096139,054

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3,2866,4835,9817,4157,0146,3644,5747,3758,3456,6937,16612,596
Cash from Investing Activity +-4,026-3,609-3,865-1,805-7,373-1,512-272-493993-6,250-7,263-9,027
Cash from Financing Activity +-593-3,265-2,239-6,183937-4,726-5,184-5,110-7,603-1,1831,341-4,497
Net Cash Flow-1,333-392-123-574579126-8831,7731,736-7411,243-928

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow4.00-32.00-34.00-34.00-36.00-43.00-46.00-45.00-46.00-40.00-44.00-45.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days364660445138545558514644
Inventory Days
Days Payable
Cash Conversion Cycle364660445138545558514644
Working Capital Days-38-57-40-34-105-80-42-53-50-44-65
ROCE %8%8%9%5%9%6%7%7%8%9%12%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%
FIIs10.84%10.82%10.10%10.28%9.63%9.45%9.75%10.00%9.85%9.44%9.50%9.17%
DIIs15.58%15.89%14.70%14.19%14.32%14.16%14.59%15.68%16.11%15.47%15.49%16.95%
Government0.32%0.32%0.32%0.32%0.32%0.32%0.32%0.32%0.32%0.33%0.33%0.01%
Public26.41%26.12%28.02%28.32%28.87%29.21%28.48%27.15%26.87%27.91%27.81%27.02%
No. of Shareholders31,65,13434,30,59838,82,48238,59,60938,45,53338,90,51838,27,76538,07,72539,80,32844,35,22646,07,35145,45,438

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Large Cap Fund20,000,0003.63779.57,924,2972024-11-13152.39%
Nippon India Multi Cap Fund16,300,0002.47635.297,924,2972024-11-13105.7%
SBI Arbitrage Opportunities Fund12,393,0001.81483.027,924,2972024-11-1356.39%
Kotak Equity Arbitrage Fund - Regular Plan10,560,3751.14411.597,924,2972024-11-1333.27%
Axis Midcap Fund7,924,2971.26308.857,924,2972024-11-130%
ICICI Prudential Equity - Arbitrage Fund6,800,6251.63265.057,924,2972024-11-13-14.18%
HDFC Arbitrage Fund - Regular Plan6,102,0002.33237.837,924,2972024-11-13-23%
HDFC Arbitrage Fund - Wholesale Plan6,102,0002.33237.837,924,2972024-11-13-23%
Nippon India ELSS Tax Saver Fund5,600,0001.54218.267,924,2972024-11-13-29.33%
SBI Balanced Advantage Fund4,350,3750.62169.567,924,2972024-11-13-45.1%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)11.5610.435.363.173.12
Diluted EPS (Rs.)11.5610.435.363.173.12
Cash EPS (Rs.)21.5612.6710.4410.3611.08
Book Value[Excl.RevalReserv]/Share (Rs.)119.95107.0481.4574.3275.41
Book Value[Incl.RevalReserv]/Share (Rs.)119.95107.0481.4574.3275.41
Revenue From Operations / Share (Rs.)192.29172.45133.98101.60107.71
PBDIT / Share (Rs.)39.4528.6226.3823.0531.44
PBIT / Share (Rs.)27.6017.8516.6114.4621.71
PBT / Share (Rs.)14.257.063.323.485.23
Net Profit / Share (Rs.)9.711.910.661.771.35
NP After MI And SOA / Share (Rs.)11.5710.445.453.533.76
PBDIT Margin (%)20.5116.5919.6922.6829.19
PBIT Margin (%)14.3510.3512.3914.2320.15
PBT Margin (%)7.414.092.473.424.85
Net Profit Margin (%)5.041.100.491.741.24
NP After MI And SOA Margin (%)6.016.054.063.473.49
Return on Networth / Equity (%)11.4211.587.755.415.63
Return on Capital Employeed (%)9.036.877.226.809.44
Return On Assets (%)2.642.591.541.141.13
Long Term Debt / Equity (X)1.161.071.461.441.81
Total Debt / Equity (X)1.531.702.121.852.47
Asset Turnover Ratio (%)0.450.220.150.090.12
Current Ratio (X)0.870.870.790.830.86
Quick Ratio (X)0.770.780.690.770.79
Inventory Turnover Ratio (X)1.300.000.000.000.00
Dividend Payout Ratio (NP) (%)17.2816.7528.4437.1834.59
Dividend Payout Ratio (CP) (%)8.548.2510.1810.829.64
Earning Retention Ratio (%)82.7283.2571.5662.8265.41
Cash Earning Retention Ratio (%)91.4691.7589.8289.1890.36
Interest Coverage Ratio (X)2.722.092.181.841.89
Interest Coverage Ratio (Post Tax) (X)1.590.921.281.031.16
Enterprise Value (Cr.)172259.95103964.90120863.1168274.4553663.29
EV / Net Operating Revenue (X)2.801.892.822.101.84
EV / EBITDA (X)13.6611.3714.349.276.31
MarketCap / Net Operating Revenue (X)2.051.101.781.020.30
Retention Ratios (%)82.7183.2471.5562.8165.40
Price / BV (X)3.892.113.401.580.49
Price / Net Operating Revenue (X)2.051.101.781.020.30
EarningsYield0.020.050.020.030.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Tata Power Company Ltd as of November 14, 2024 is: 435.06

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, Tata Power Company Ltd is Undervalued by 0.48% compared to the current share price 433.00

Intrinsic Value of Tata Power Company Ltd as of November 14, 2024 is: 541.10

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, Tata Power Company Ltd is Undervalued by 24.97% compared to the current share price 433.00

Last 5 Year EPS CAGR: 24.37%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -47.33, which is a positive sign.
  2. The company has shown consistent growth in sales (34.92 cr) and profit (115.77 cr) over the years.
  1. The stock has a low average ROCE of 8.25%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 48.58, which may not be favorable.
  3. The company has higher borrowings (46,656.00) compared to reserves (18,392.17), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tata Power Company Ltd:
    1. Net Profit Margin: 5.04%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 9.03% (Industry Average ROCE: 8.97%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 11.42% (Industry Average ROE: 11.23%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.59
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.77
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 36.5 (Industry average Stock P/E: 73.49)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.53
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Tata Power Company Ltd. is a Public Limited Listed company incorporated on 18/09/1919 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L28920MH1919PLC000567 and registration number is 000567. Currently Company is involved in the business activities of Electric power generation, transmission and distribution. Company’s Total Operating Revenue is Rs. 11107.93 Cr. and Equity Capital is Rs. 319.56 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Power - Generation/DistributionBombay House, Mumbai Maharashtra 400001investorcomplaints@tatapower.com
http://www.tatapower.com
Management
NamePosition Held
Mr. Natarajan ChandrasekaranChairman, Non Ind & Non Exe Director
Mr. Praveer SinhaManaging Director & CEO
Mr. Rajiv MehrishiInd. Non-Executive Director
Mr. Ashok SinhaInd. Non-Executive Director
Mr. Tarun BajajInd. Non-Executive Director
Mr. Saurabh AgrawalNon Exe.Non Ind.Director
Ms. Anjali BansalInd. Non-Executive Director
Ms. Vibha PadalkarInd. Non-Executive Director
Mr. Sanjay V BhandarkarInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Tata Power Company Ltd?

The latest intrinsic value of Tata Power Company Ltd as on 14 November 2024 is ₹435.06, which is 0.48% higher than the current market price of ₹433.00.

What is the Market Cap of Tata Power Company Ltd?

The Market Cap of Tata Power Company Ltd is 1,38,422 Cr..

What is the current Stock Price of Tata Power Company Ltd as on 14 November 2024?

The current stock price of Tata Power Company Ltd as on 14 November 2024 is ₹433.

What is the High / Low of Tata Power Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of Tata Power Company Ltd stocks is 495/251.

What is the Stock P/E of Tata Power Company Ltd?

The Stock P/E of Tata Power Company Ltd is 36.5.

What is the Book Value of Tata Power Company Ltd?

The Book Value of Tata Power Company Ltd is 105.

What is the Dividend Yield of Tata Power Company Ltd?

The Dividend Yield of Tata Power Company Ltd is 0.46 %.

What is the ROCE of Tata Power Company Ltd?

The ROCE of Tata Power Company Ltd is 11.1 %.

What is the ROE of Tata Power Company Ltd?

The ROE of Tata Power Company Ltd is 11.3 %.

What is the Face Value of Tata Power Company Ltd?

The Face Value of Tata Power Company Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tata Power Company Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE