An In-Depth Look at One of India’s Largest Integrated Power Companies
Tata Power, one of the largest integrated power companies in India, has a significant presence across the power value chain, from generation to transmission and distribution. This blog post provides a comprehensive fundamental analysis of Tata Power.
Valuation Highlights
Tata Power’s valuation highlights reveal some interesting insights:
- The Price to Earnings (P/E) ratio is 32.68, which is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.
- The Price to Book (P/B) ratio is 3.53, which compares the company’s market valuation to its book value.
- The Price to Sales (P/S) ratio is 2.01, which is a valuation ratio that compares a company’s stock price to its revenues.
- The Enterprise Value to EBITDA Multiple is 31.37.
Profitability Highlights
The profitability analysis of Tata Power shows a promising picture:
- The company’s Profit Before Tax has been increasing for the last 5 quarters.
- The company has achieved a good Return on Equity of 12.47%.
- The company has a very low Dividend Yield of 0.530%.
- The Earning Yield of the company is 3.06%.
- In the last three years, the company has given poor Returns on Assets.
Growth Highlights
The growth analysis of Tata Power reveals the following:
- The company’s sales dropped by 73.41% from last year.
- The Operating Cash Flow has been decreasing for the last 3 years.
Stability Highlights
The stability analysis of Tata Power shows an excellent score of 95.00. The company has an Interest Coverage of 0.
Conclusion
Tata Power has shown strong fundamentals with a good return on equity, increasing profit before tax, and a stable financial position. However, the decrease in sales and operating cash flow over the past year is a concern. Investors should keep these factors in mind while making investment decisions.
Please note that investing in stocks always comes with risks. It’s important to do your own research or consult with a financial advisor before making any investment decisions.
Happy investing! 😊
Source:
(1) Fundamental Analysis of Tata Power Co. Ltd. (TATAPOWER). https://www.topstockresearch.com/rt/Stock/TATAPOWER/FundamentalAnalysis.
(2) Tata Power Company Stock Fundamental Analysis – Financial Results …. https://investyadnya.in/stock-o-meter/tata-power-company.
(3) Tata Power – Fundamental analysis – Trade Alone. https://tradealone.com/tata-powers-fundamental-analysis/.
(4) Tata Power Company Limited, Fundamental analysis – Chartink. https://chartink.com/fundamentals/TATAPOWER.html.