Tata Power Company Ltd is a leading Indian power company that was founded in 1915. It is a subsidiary of the Tata Group, one of India’s largest conglomerates. The company has a strong presence in the power generation, transmission, and distribution sectors, and has been at the forefront of India’s energy revolution. With a commitment to sustainability and innovation, Tata Power is poised to lead India’s energy sector into the future.
Fundamentals of Tata Power Company
Here is the fundamentals of Tata Power Company
Market Cap: ₹ 65,440.55
As of 4/14/2023, Tata Power Company’s market cap was ₹ 65,440.55, indicating its overall size and value in the market.
PE Ratio: 12.09
PE Ratio: 12.09 as of 4/14/2023, indicating how much investors are willing to pay for each dollar of the company’s earnings.
EBITDA Margin (%): 13.74 %
Tata Power Company’s EBITDA margin was 13.74 %, indicating the company’s earnings before interest, taxes, depreciation, and amortization as a percentage of its revenue.
Revenue Growth 1-Year (%): 30.92 %
Over the past year, Tata Power Company’s revenue growth was 30.92 %, indicating its growth or decline in revenue over the last 12 months.
Net Profit Growth 1-Year (%): >11.31 %
Over the past year, Tata Power Company’s net profit was 11.31 % as 1 Year net profit %, indicating its growth or decline in profits over the last 12 months.
Tata Power Company Share Price Target Prediction Using Fundamentals
Here’s an in-depth analysis of Tata Power Company Ltd, suitable for both experienced traders and casual investors
Overview and Stock Performance: As of December 1st, Tata Power’s closing price was ₹276, marking a 3.02% increase. The company, a leader in electricity generation, transmission, and distribution, is increasingly focusing on renewable energy, including solar roofs and EV charging stations. With a market cap of ₹88,191 Cr, the stock’s P/E ratio is 25.8, and it has a 52-week high/low of ₹278/₹182.
Financial Highlights: Over the past 5 years, Tata Power has shown a robust profit growth of 44.9% CAGR and maintains a healthy dividend payout of 31.7%. However, it’s trading at 2.93 times its book value and has a lower 3-year ROE of 9.47%. The company’s other income contributes significantly to earnings.
Sales and Profit Trends: The company has experienced consistent sales growth, with the most recent figures showing sales of ₹15,738 crores and a net profit of ₹1,017 crores. The operating profit margin stands at 18%. These numbers indicate a strong upward trend in profitability and operational efficiency.
Growth Rates: The compounded sales growth is 24% over 3 years and 12% TTM, while profit growth is even more impressive at 133% over 3 years and 13% TTM. This signifies a strong upward trajectory in both sales and profits.
Balance Sheet Analysis: The company’s equity capital and reserves have been steadily increasing. Borrowings and other liabilities are also significant, reflecting the capital-intensive nature of the energy sector. The total assets and liabilities as of September 2023 stand at ₹132,106 crores.
Key Ratios: The debtor days and cash conversion cycle have remained consistent, reflecting stable operational efficiency. The return on capital employed (ROCE) has improved to 12% as of March 2023, indicating better utilization of capital
Tata Power Company Share Price Targets
After analyzing the fundamentals of Tata Power Company, Here are the share price targets the Tata Power Company company shown in the table below.
|Year||Share Price Target 1||Share Price Target 2|
Tata Power Company Share Price Target 2023
As per fundamental analysis and chart analysis which we did, we got few share prediction for
The target share price of Tata Power Company for the year 2023, the 1st target could be ₹235 and 2nd target is around ₹265
Tata Power Company Share Price Target 2024
The target share price of Tata Power Company for the year 2024, the 1st target could be ₹295 and 2nd target is around ₹325
Tata Power Company Share Price Target 2025
The target share price of Tata Power Company for the year 2025, the 1st target could be ₹355 and 2nd target is around ₹385
Tata Power Company Share Price Target 2026
The target share price of Tata Power Company for the year 2026, the 1st target could be ₹415 and 2nd target is around ₹445
Tata Power Company Share Price Target 2027 to 2030
The target share price of Tata Power Company for the years 2027, 2028, 2029, and 2030 will be ₹475, ₹535, ₹595, and ₹655 respectively.
ata Power Company Ltd has a market cap of ₹ 65,440.55 crore and a current price of Rs. 205.00. The company has a PE ratio TTM of 12.09, which indicates that the stock is undervalued. The EBITDA margin of 13.74% is healthy and indicates that the company is generating good profits from its operations. The revenue growth of 30.92% over the past year is impressive and shows that the company is growing at a healthy rate. The net profit growth of 11.31% is also positive, indicating that the company is managing its expenses well.