Tata Power Company Ltd (TATAPOWER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Torrent Power

Adani Power

JSW Energy

NTPC

Adani Green

Tata Power Co.

Adani Energy Sol

NHPC Ltd

NTPC Green Ene.

NLC India

Power Grid Corpn

Why is Tata Power Company Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.03 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.03 times
The company has been able to generate a Return on Capital Employed (avg) of 8.07% signifying low profitability per unit of total capital (equity and debt)
ROCE(HY) Lowest at 10.50%
OPERATING PROFIT TO INTEREST (Q) Lowest at 2.50 times
PAT(Q) At Rs 919.44 cr has Fallen at -11.0% (vs previous 4Q average)

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.85% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.30% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Tata Power Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tata Power Co.

-10.95%

-0.47

23.82%

Sensex

4.84%

0.39

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.37%

EBIT Growth (5y)

16.23%

EBIT to Interest (avg)

1.42

Debt to EBITDA (avg)

5.98

Net Debt to Equity (avg)

1.56

Sales to Capital Employed (avg)

0.63

Tax Ratio

21.31%

Dividend Payout Ratio

20.12%

Pledged Shares

Institutional Holding

26.86%

ROCE (avg)

8.00%

ROE (avg)

10.20%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.26

EV to EBIT

19.41

EV to EBITDA

13.13

EV to Capital Employed

1.88

EV to Sales

2.75

PEG Ratio

4.98

Dividend Yield

0.59%

ROCE (Latest)

9.69%

ROE (Latest)

10.71%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CF(Y)

Highest at Rs 12,680.19 Cr

-11What is not working for the Company

ROCE(HY)

Lowest at 10.50%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 2.50 times

PAT(Q)

At Rs 919.44 cr has Fallen at -11.0% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 1.86 times

NET SALES(Q)

At Rs 15,544.91 cr has Fallen at -6.1% (vs previous 4Q average

PBT LESS OI(Q)

At Rs 1,155.69 cr has Fallen at -6.0% (vs previous 4Q average

EPS(Q)

Lowest at Rs 2.88

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Here's what is working for Tata Power Co.

Operating Cash Flow - Annually

Highest at Rs 12,680.19 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Here's what is not working for Tata Power Co.

Operating Profit to Interest - Quarterly

Lowest at 2.50 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 919.44 cr has Fallen at -11.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1,032.90 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 15,544.91 cr has Fallen at -6.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 16,554.92 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1,155.69 cr has Fallen at -6.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1,228.97 Cr

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 2.88

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 1.86 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio