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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Tata Power Company Ltd

About the Company - Tata Power Company Ltd

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, 24, Homi Mody Street, 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. Hemant BhargavaNon Executive Director
Ms. Vibha PadalkarInd. Non-Executive Director
Mr. Sanjay V BhandarkarInd. Non-Executive Director
Mr. Saurabh AgrawalNon Executive Director
Ms. Anjali BansalInd. Non-Executive Director

Tata Power Company Ltd. Share Price Update

Share PriceValue
Today₹378.50
Previous Day₹378.00

Basic Stock Data of Tata Power Company Ltd

Market Cap 1,21,135 Cr.
Current Price 379
High / Low413/182
Stock P/E35.4
Book Value 94.3
Dividend Yield0.53 %
ROCE11.7 %
ROE12.6 %
Face Value 1.00

Data Source: screener.in

Competitors of Tata Power Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
NLC India Ltd 34,215 Cr. 247294/69.713.2 1191.38 %13.5 %15.5 % 10.0
SJVN Ltd 47,216 Cr. 120170/30.452.8 36.51.49 %9.27 %10.3 % 10.0
Adani Power Ltd 2,13,674 Cr. 554589/1329.17 1050.00 %15.8 %44.8 % 10.0
NTPC Ltd 3,23,044 Cr. 333348/16716.5 1582.17 %9.83 %12.0 % 10.0
Jaiprakash Power Ventures Ltd 14,084 Cr. 20.624.0/5.1528.9 15.60.00 %5.16 %0.57 % 10.0
Industry Average20 Cr254.9224.1186.821.01%10.71%16.63%10

Tata Power Company Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8,2907,59810,36310,1329,81010,91311,96014,49514,03114,12912,45415,21315,738
Expenses6,3235,8648,9377,9848,4819,27910,09112,81212,27011,81010,52612,50012,967
Operating Profit1,9671,7341,4252,1491,3291,6341,8691,6831,7602,3191,9282,7132,771
OPM %24%23%14%21%14%15%16%12%13%16%15%18%18%
Other Income4863915025821,026865621,2271,5021,4971,352877567
Interest1,0659668909459469531,0151,0261,0521,0981,1961,2211,182
Depreciation699738663747771758846822838853926893926
Profit before tax6894213731,038638788711,0621,3731,8641,1581,4761,231
Tax %46%24%-29%55%21%30%-794%17%32%44%19%23%17%
Net Profit3713184814665065526328849351,0529391,1411,017
EPS in Rs0.880.781.231.221.321.331.572.492.562.962.433.042.74

Tata Power Company Ltd Quarterly Chart

Tata Power Company Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales26,06933,17735,72633,59329,49427,58826,84029,88129,13632,70342,81655,10957,534
Expenses21,18527,58328,81027,29227,38922,11424,54526,81123,84725,74735,78547,38147,803
Operating Profit4,8845,5956,9166,3012,1055,4732,2953,0705,2896,9567,0317,7289,731
OPM %19%17%19%19%7%20%9%10%18%21%16%14%17%
Other Income-1,5153752291,0564,0601,2976,5867,1863,7961,7392,4865,5404,293
Interest1,5272,6423,4403,6993,2363,3653,7614,1704,4944,0103,8594,3724,697
Depreciation1,3352,0522,7302,1741,6491,9562,3462,3932,6342,7453,1223,4393,599
Profit before tax5071,2779751,4841,2811,4502,7733,6931,9581,9412,5355,4575,728
Tax %291%92%103%72%53%24%6%29%33%26%15%30%
Net Profit-898123124577861,1002,6112,6061,3161,4392,1563,8104,149
EPS in Rs-4.02-0.32-0.960.622.453.318.908.713.763.535.4510.4411.17
Dividend Payout %-27%-319%-114%210%53%39%15%15%41%44%32%19%

Tata Power Company Ltd Profit & Loss Yearly Chart

Tata Power Company Ltd Growth

Compounded Sales Growth
10 Years:5%
5 Years:15%
3 Years:24%
TTM:6%
Compounded Profit Growth
10 Years:39%
5 Years:45%
3 Years:133%
TTM:-3%
Stock Price CAGR
10 Years:17%
5 Years:41%
3 Years:61%
1 Year:87%
Return on Equity
10 Years:5%
5 Years:7%
3 Years:9%
Last Year:13%

Tata Power Company Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital237237237270270270270270270320320320320
Reserves12,43712,09812,16414,04811,36312,94416,12918,03519,29622,00322,12228,46829,817
Preference Capital00000024500000
Borrowings33,86037,88240,17340,60738,84948,81548,34448,50651,93646,70851,19552,92352,526
Other Liabilities15,07017,03818,81020,26019,57520,79917,14817,26218,17229,62538,91346,38649,445
Total Liabilities61,60467,25771,38375,18570,05782,82981,89284,07389,67498,655112,550128,096132,106
Fixed Assets27,65341,35343,39444,72636,41446,59544,65644,30547,66652,17957,38961,74762,689
CWIP12,6592,3583,3893,3231,3452,1781,6532,5761,6123,2704,6355,3767,199
Investments3,4233,1203,0193,44511,78511,87312,42913,54214,53513,14914,16016,67016,258
Other Assets17,86820,42621,58223,69220,51322,18423,15423,65125,86130,05636,36544,30345,961
Total Assets61,60467,25771,38375,18570,05782,82981,89284,07389,67498,655112,550128,096132,106

Tata Power Company Ltd Reserves and Borrowings Chart

Tata Power Company Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,1473,2866,4835,9817,4157,0146,3644,5747,3758,3456,6937,159
Cash from Investing Activity -5,963-4,026-3,609-3,865-1,805-7,373-1,512-272-493993-6,250-7,257
Cash from Financing Activity 5,798-593-3,265-2,239-6,183937-4,726-5,184-5,110-7,603-1,1831,341
Net Cash Flow981-1,333-392-123-574579126-8831,7731,736-7411,243

Tata Power Company Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days323646604451385455585146
Inventory Days
Days Payable
Cash Conversion Cycle323646604451385455585146
Working Capital Days-56-38-57-40-34-105-80-42-53-50-44
ROCE %9%8%8%9%5%9%6%7%7%8%9%12%

Tata Power Company Ltd Financial Efficiency Indicators Chart

Tata Power Company Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%46.86%
FIIs12.17%11.26%11.06%10.84%10.82%10.10%10.28%9.63%9.45%9.75%10.00%9.85%
DIIs20.06%16.62%19.90%15.58%15.89%14.70%14.19%14.32%14.16%14.59%15.68%16.11%
Government0.80%0.54%0.54%0.32%0.32%0.32%0.32%0.32%0.32%0.32%0.32%0.32%
Public20.11%24.73%21.64%26.41%26.12%28.02%28.32%28.87%29.21%28.48%27.15%26.87%
No. of Shareholders9,86,43313,92,98217,04,51731,65,13434,30,59838,82,48238,59,60938,45,53338,90,51838,27,76538,07,72539,80,328

Tata Power Company Ltd Shareholding Pattern Chart

No. of Tata Power Company Ltd Shareholders

Tata Power Company Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Large Cap Fund200000003.29664.3
Nippon India Multi Cap Fund163000002.2541.4
SBI Arbitrage Opportunities Fund125145001.64415.67
Kotak Equity Arbitrage Fund - Regular Plan122715001.18407.6
Axis Midcap Fund79242971.07263.21
ICICI Prudential Equity - Arbitrage Fund71212501.48236.53
Nippon India ELSS Tax Saver Fund60000001.42199.29
HDFC Arbitrage Fund - Regular Plan59703752.25198.31
HDFC Arbitrage Fund - Wholesale Plan59703752.25198.31
Tata Arbitrage Fund47621251.81158.17

Tata Power Company Ltd ROCE Trend

Tata Power Company Ltd EPS Trend

Tata Power Company Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)10.435.363.173.128.08
Diluted EPS (Rs.)10.435.363.173.128.08
Cash EPS (Rs.)12.6710.4410.3611.0813.30
Book Value[Excl.RevalReserv]/Share (Rs.)107.0481.4574.3275.4170.14
Book Value[Incl.RevalReserv]/Share (Rs.)107.0481.4574.3275.4170.14
Revenue From Operations / Share (Rs.)172.45133.98101.60107.71110.47
PBDIT / Share (Rs.)28.6226.3823.0531.4426.36
PBIT / Share (Rs.)17.8516.6114.4621.7117.52
PBT / Share (Rs.)7.063.323.485.238.94
Net Profit / Share (Rs.)1.910.661.771.354.45
NP After MI And SOA / Share (Rs.)10.445.453.533.768.71
PBDIT Margin (%)16.5919.6922.6829.1923.86
PBIT Margin (%)10.3512.3914.2320.1515.85
PBT Margin (%)4.092.473.424.858.08
Net Profit Margin (%)1.100.491.741.244.02
NP After MI And SOA Margin (%)6.054.063.473.497.88
Return on Networth / Equity (%)11.587.755.415.6314.02
Return on Capital Employeed (%)6.877.226.809.448.52
Return On Assets (%)2.591.541.141.132.79
Long Term Debt / Equity (X)1.071.461.441.811.85
Total Debt / Equity (X)1.702.121.852.472.68
Asset Turnover Ratio (%)0.220.150.090.120.13
Current Ratio (X)0.870.790.830.860.73
Quick Ratio (X)0.780.690.770.790.67
Dividend Payout Ratio (NP) (%)16.7528.4437.1834.5914.93
Dividend Payout Ratio (CP) (%)8.2510.1810.829.647.41
Earning Retention Ratio (%)83.2571.5662.8265.4185.07
Cash Earning Retention Ratio (%)91.7589.8289.1890.3692.59
Interest Coverage Ratio (X)2.092.181.841.891.71
Interest Coverage Ratio (Post Tax) (X)0.921.281.031.160.87
Enterprise Value (Cr.)103964.90120863.1168274.4553663.2966356.72
EV / Net Operating Revenue (X)1.892.822.101.842.22
EV / EBITDA (X)11.3714.349.276.319.30
MarketCap / Net Operating Revenue (X)1.101.781.020.300.66
Retention Ratios (%)83.2471.5562.8165.4085.06
Price / BV (X)2.113.401.580.491.19
Price / Net Operating Revenue (X)1.101.781.020.300.66
EarningsYield0.050.020.030.110.11

Tata Power Company Ltd Profitability Ratios (%)

Tata Power Company Ltd Liquidity Ratios

Tata Power Company Ltd Liquidity Ratios (%)

Tata Power Company Ltd Interest Coverage Ratios (X)

Tata Power Company Ltd Valuation Ratios

Fair Value / Intrinsic Value of Tata Power Company Ltd

Fair Value: ₹422.84

The stock is undervalued by 11.57% compared to the current price ₹379

*Investments are subject to market risks

Strength and Weakness of Tata Power Company Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -46.58, which is a positive sign.
  2. The company has higher reserves (17,763.38 cr) compared to borrowings (18.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (34.85 cr) and profit (115.77 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 17.63 and average Dividend Yield of 14.59%.
  2. The stock has a low average ROCE of 8.08%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 47.58, which may not be favorable.

Should I Buy Tata Power Company Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Tata Power Company Ltd:
    1. Net Profit Margin: 1.10%
      • 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: 6.87% (Industry Average ROCE: 10.09%)
      • 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. Interest Coverage Ratio (Post Tax): 0.92
      • 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.
    4. Quick Ratio: 0.78
      • 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.
    5. ✓ Stock P/E: 35.4 (Industry average Stock P/E: 45.49)
      • 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.
    6. ✗ Total Debt / Equity: 1.70
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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