Tata Power Company Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹138,933.36 crore, PE ratio of 37.59, debt-to-equity ratio of 140.06, and return on equity of 10.19%. These figures reflect the company’s financial health and current market valuation.
Content:
- Tata Power Company Ltd Overview
- Tata Power Company Ltd Financial Results
- Tata Power Company Ltd Financial Analysis
- Tata Power Company Company Metrics
- Tata Power Company Ltd Stock Performance
- Tata Power Company Peer Comparison
- Tata Power Company Ltd Shareholding Pattern
- Tata Power Company Ltd History
- How To Invest In Tata Power Company Share?
- Tata Power Company Limited Fundamental Analysis – FAQs
Tata Power Company Ltd Overview
Tata Power Company Ltd is India’s largest integrated power company. It operates in the energy sector, focusing on the generation, transmission, and distribution of electricity from various sources including thermal, hydroelectric, and renewable energy.
The company has a market capitalisation of ₹138,933.36 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 8.33% below its 52-week high and 90.66% above its 52-week low.
Tata Power Company Ltd Financial Results
Tata Power Company Ltd showed growth from FY 22 to FY 24, with sales increasing from ₹42,816 crore to ₹61,449 crore and net profit rising from ₹2,156 crore to ₹4,280 crore. The company improved its OPM and EPS over the years.
1. Revenue Trend: Sales increased from ₹42,816 crore in FY 22 to ₹55,109 crore in FY 23, and further to ₹61,449 crore in FY 24, indicating strong revenue growth.
2. Equity and Liabilities: Interest expenses rose from ₹3,859 crore in FY 22 to ₹4,633 crore in FY 24, suggesting increased financial liabilities. Depreciation also increased from ₹3,122 crore to ₹3,786 crore over the same period.
3. Profitability: Operating Profit Margin (OPM) improved from 14% in FY 23 to 18% in FY 24, reflecting enhanced operational efficiency. EBITDA saw significant growth from ₹8,431 crore in FY 22 to ₹12,607 crore in FY 24.
4. Earnings per Share (EPS): EPS increased from ₹5 in FY 22 to ₹10 in FY 23, and further to ₹12 in FY 24, indicating strong profit growth per share.
5. Return on Net Worth (RoNW): While specific RoNW figures are not provided, the increasing net profit from ₹2,156 crore in FY 22 to ₹4,280 crore in FY 24 suggests a positive impact on RoNW, indicating better returns on shareholders’ equity.
6. Financial Position: The company’s financial position improved with EBITDA increasing from ₹8,431 crore in FY 22 to ₹12,607 crore in FY 24, despite rising interest and depreciation expenses, showcasing robust financial health and management.
Tata Power Company Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales Insight-icon | 61,449 | 55,109 | 42,816 |
| Expenses | 50,665 | 47,403 | 35,305 |
| Operating Profit | 10,784 | 7,706 | 7,511 |
| OPM % | 18 | 14 | 18 |
| Other Income | 2,190 | 2,362 | 530 |
| EBITDA | 12,607 | 9,144 | 8,431 |
| Interest | 4,633 | 4,372 | 3,859 |
| Depreciation | 3,786 | 3,439 | 3,122 |
| Profit Before Tax | 4,554 | 2,258 | 1,060 |
| Tax % | 32 | 73 | 36 |
| Net Profit | 4,280 | 3,810 | 2,156 |
| EPS | 12 | 10 | 5 |
| Dividend Payout % | 17.3 | 19.18 | 32.65 |
* Consolidated Figures in Rs. Crores
Tata Power Company Company Metrics
Tata Power Company’s market cap is ₹138,933.36 crore with a book value of ₹101 per share. The face value per share is ₹1. Total debt is ₹53,689.45 crore, ROE is 10.19%, and quarterly EBITDA is ₹3,713.51 crore. The dividend yield stands at 0.46%.
Market Capitalization:
Market Capitalization represents the total market value of Tata Power Company’s outstanding shares, amounting to ₹138,933.36 crore.
Book Value:
The book value per share of Tata Power is ₹101 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Tata Power Company’s shares is ₹1, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 0.49 measures how efficiently Tata Power Company uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Tata Power Company stands at ₹53,689.45 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 10.19% measures Tata Power Company’s profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Tata Power Company is ₹3,713.51 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 0.46% shows the annual dividend payment as a percentage of Tata Power Company’s current share price, indicating the return on investment from dividends alone.
Tata Power Company Ltd Stock Performance
Tata Power Company Ltd delivered returns of 76.9% in one year, 47.7% over three years, and 48.7% over five years, showcasing impressive growth. This performance highlights the company’s ability to provide substantial returns to investors across various investment periods, reflecting its strong financial health.
| Period | Return on Investment (%) |
| 1 Year | 76.9 % |
| 3 Years | 47.7 |
| 5 Years | 48.7 |
Example: If an investor had invested ₹1,000 in Tata Power Company’s stock:
1 year ago, their investment would be worth ₹1,769.
3 years ago, their investment would have grown to ₹1,477.
5 years ago, their investment would have increased to approximately ₹1,487.
Tata Power Company Peer Comparison
Tata Power Company Ltd, with a CMP of ₹418 and a P/E ratio of 36, has a market cap of ₹1,33,485 Cr and a one-year return of 77%. Compared to peers like NTPC (93% return) and Adani Power (141% return), Tata Power shows strong but varied performance within the power sector.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| NTPC | 411 | 19 | 3,98,194 | 93 | 1,16,69,294 | 8.9 | 0.96 | 3.68 | 29.89 |
| Power Grid Corpn | 346 | 21 | 3,21,801 | 89 | 90,13,450 | 1 | 0.95 | 4.55 | 28.01 |
| Adani Green | 1,781 | 209 | 2,82,092 | 83 | 4,09,679 | 2 | 0.82 | 18.09 | -3.35 |
| Adani Power | 695 | 17 | 2,68,212 | 141 | 1,41,19,072 | -4 | 0.78 | 22.45 | 23.77 |
| Tata Power Co. | 418 | 36 | 1,33,485 | 77 | 1,42,22,006 | -5.14 | 0.89 | 11.31 | 15.50 |
| Adani Energy Sol | 1,104 | 122 | 1,32,598 | 33 | 24,05,189 | 10.25 | 0.82 | 18.12 | 3.21 |
| JSW Energy | 703 | 63 | 1,22,868 | 106 | 19,02,735 | -1 | 0.93 | 6.57 | 41.39 |
Tata Power Company Ltd Shareholding Pattern
Tata Power Company Ltd’s shareholding pattern saw minor changes from December 2023 to June 2024. Promoter holdings remained stable at 46.86%. FII holdings slightly decreased from 9.85% to 9.5%, while DII holdings slightly decreased from 16.43% to 15.82%. Retail and others’ shares increased from 26.87% to 27.81%.
| Jun-24 | Mar-24 | Dec-23 | |
| Promoters | 46.86 | 46.86 | 47 |
| FII | 9.5 | 9.44 | 9.85 |
| DII | 15.82 | 15.8 | 16.43 |
| Retail & others | 27.81 | 27.91 | 26.87 |
Tata Power Company Ltd History
Tata Power Company Limited is a leading integrated power company in India. Its primary focus is on the generation, transmission, and distribution of electricity. The company operates through various segments, each catering to different aspects of the power sector.
The Generation segment of Tata Power is responsible for producing electricity from diverse sources. This includes hydroelectric power plants, thermal power stations using coal, gas, and oil, as well as plants operated under lease arrangements. The company also has a growing Renewables segment, which focuses on generating power from sustainable sources like wind and solar energy.
Tata Power’s Transmission and Distribution segment manages the company’s power distribution network. This involves the sale of electricity to retail customers and related services. Additionally, the company engages in power trading activities. The Others segment encompasses various ancillary services such as project management, infrastructure management, property development, and satellite communication.
How To Invest In Tata Power Company Share?
To invest in Tata Power Company shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Tata Power shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Tata Power Company Limited Fundamental Analysis – FAQs
Fundamental analysis of Tata Power examines key financial metrics: Market Cap (₹138,933.36 crore), PE Ratio (37.59), Debt to Equity (140.06), and Return on Equity (10.19%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the power sector.
The market capitalization of Tata Power Ltd is ₹138,933.36 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Tata Power Company Limited is India’s largest integrated power company. It specializes in the generation, transmission, and distribution of electricity from various sources including thermal, hydroelectric, and renewable energy. The company also offers related services in the power sector.
Tata Power is a public limited company, part of the Tata Group. While the Tata Group, through its holding companies, owns a significant stake, it is a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Tata Power typically include Tata Sons (the holding company of Tata Group) as a major stakeholder, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Tata Power operates in the power and energy industry. It is primarily engaged in the generation, transmission, and distribution of electricity. The company also has significant investments in renewable energy sources and provides various related services in the power sector.
To invest in Tata Power shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Tata Power is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
