Tata Power Company Ltd
NSE: TATAPOWER BSE: 500400
â‚ą351
-2 (0.57%)
Thu, 22 Oct 2026, 05:38 pm
Market Cap (in Cr)110223.24
PE Ratio29.07
Dividend0.72
Utilities
Electric Utilities
24.5KTata Power Company Analysis
dividend
- Dividends per share have increased over the past 10 years.
- Dividends paid are well covered by earnings (2.8x coverage).
- Dividends after 3 years are expected to be well covered by earnings (4.6x coverage).
- Dividends per share have been stable in the past 10 years.
- Tata Power's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
- Tata Power's dividend is above the markets top 25% of dividend payers in India (3.08%).
future
- Tata Power's earnings are expected to increase by more than the low risk growth rate in 3 years time.
- An improvement in Tata Power's performance (ROE) is expected over the next 3 years.
- Cash flow for Tata Power is expected to increase but not above the 50% threshold in 2 years time.
- Tata Power's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
- Tata Power's earnings growth is positive but not above the India market average.
- Tata Power's earnings growth is positive but not above the low risk savings rate of 7.2%.
- Tata Power's earnings are expected to increase but not above the low risk growth rate next year.
- Tata Power's net income is expected to increase but not above the 50% threshold in 2 years time.
- Tata Power is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
- Performance (ROE) is not expected to exceed the current IN Electric Utilities industry average.
- Tata Power's revenue is expected to increase but not above the 50% threshold in 2 years time.
- Tata Power's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).
- Tata Power's revenue growth is positive but not above the India market average.
health
- Tata Power is profitable, therefore cash runway is not a concern.
- Tata Power is profitable, therefore cash runway is not a concern.
- The level of debt compared to net worth has been reduced over the past 5 years (234.3% vs 203.4% today).
- Tata Power's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Debt is not well covered by operating cash flow (16.6%, less than 20% of total debt).
- Debt is not covered by short term assets, assets are 0.4x debt.
- Tata Power's long term commitments exceed its cash and other short term assets.
- Interest payments on debt are not well covered by earnings (EBIT is 1.2x annual interest expense, ideally 3x coverage).
- Tata Power's level of debt (203.4%) compared to net worth is high (greater than 40%).
- High level of physical assets or inventory.
management
- The tenure for the Tata Power board of directors is about average.
- Praveer's remuneration is about average for companies of similar size in India.
- The average tenure for the Tata Power management team is over 5 years, this suggests they are a seasoned and experienced team.
misc
- Tata Power has significant price volatility in the past 3 months.
past
- Tata Power has delivered over 20% year on year earnings growth in the past 5 years.
- Tata Power's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Tata Power used its assets less efficiently than the IN Electric Utilities industry average last year based on Return on Assets.
- Tata Power's use of capital has not improved over the past 3 years (Return on Capital Employed).
- Tata Power has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Tata Power's 1-year earnings growth is negative, it can't be compared to the IN Electric Utilities industry average.
value
- Tata Power's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Tata Power's share price is below the future cash flow value, and at a substantial discount (> 40%).
- Tata Power is good value based on assets compared to the IN Electric Utilities industry average.
- Tata Power is good value based on earnings compared to the India market.
- NSEI:TATAPOWER is up 30.7% outperforming the Electric Utilities industry which returned 5.5% over the past month.
- NSEI:TATAPOWER is up 30.7% outperforming the market in India which returned 8% over the past month.
- Tata Power is poor value based on expected growth next year.
- Tata Power is overvalued based on earnings compared to the IN Electric Utilities industry average.
- TATAPOWER underperformed the Electric Utilities industry which returned -13.9% over the past year.
- TATAPOWER underperformed the Market in India which returned -14.5% over the past year.
