The Tata Power Company Limited
The Tata Power Company Limited Fundamental Analysis
The Tata Power Company Limited (TATAPOWER.NS) shows weak financial fundamentals with a PE ratio of 32.11, profit margin of 5.87%, and ROE of 9.67%. The company generates $646.2B in annual revenue with moderate year-over-year growth of 6.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TATAPOWER.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakTATAPOWER.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateTATAPOWER.NS shows balanced valuation metrics.
Growth Score
ModerateTATAPOWER.NS shows steady but slowing expansion.
Financial Health Score
WeakTATAPOWER.NS carries high financial risk with limited liquidity.
Profitability Score
WeakTATAPOWER.NS struggles to sustain strong margins.
Key Financial Metrics
Is TATAPOWER.NS Expensive or Cheap?
P/E Ratio
TATAPOWER.NS trades at 32.11 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TATAPOWER.NS's PEG of -5.09 indicates potential undervaluation.
Price to Book
The market values The Tata Power Company Limited at 3.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.24 times EBITDA. This is generally considered low.
How Well Does TATAPOWER.NS Make Money?
Net Profit Margin
For every $100 in sales, The Tata Power Company Limited keeps $5.87 as profit after all expenses.
Operating Margin
Core operations generate 19.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.67 in profit for every $100 of shareholder equity.
ROA
The Tata Power Company Limited generates $2.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Tata Power Company Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
The Tata Power Company Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
TATAPOWER.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.98
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How TATAPOWER.NS Stacks Against Its Sector Peers
| Metric | TATAPOWER.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.11 | 19.51 | Worse (Expensive) |
| ROE | 9.67% | 940.00% | Weak |
| Net Margin | 5.87% | 9081.00% | Weak |
| Debt/Equity | 1.98 | 1.73 | Neutral |
| Current Ratio | 0.75 | 1.48 | Weak Liquidity |
| ROA | 2.32% | -169.00% (disorted) | Weak |
TATAPOWER.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Tata Power Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
134.29%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
306.92%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
79.24%
Industry Style: Defensive, Dividend, Income
High Growth