SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Tata Power Company Ltd

BSE: 500400 NSE: TATAPOWER ISIN: INE245A01021
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

Snapshot

Q.1 Which industry/sub-sector does Tata Power Company Ltd belong to?
Tata Power Company Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.
Q.2 Is Tata Power Company Ltd a good quality company?
Tata Power Company Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Tata Power Company Ltd undervalued or overvalued?
Tata Power Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Tata Power Company Ltd a good buy now?
Tata Power Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Tata Power Company Ltd?
Tata Power Company Ltd revenue growth is 6.6% for FY-2025 , which is below its 5 year CAGR of 17.6% , indicating slower growth.
Q.2 Gross Profit margin of Tata Power Company Ltd?
Tata Power Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.4% for FY-2025 , which is above its 5 year median of 10.7% , indicating increasing margins.
Q.3 Operating Profit Margin of Tata Power Company Ltd?
Tata Power Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.47% for FY-2025 , which is above its 5 year median of 17.93% indicating increasing margins.
Q.4 Net Profit Margin of Tata Power Company Ltd?
Tata Power Company Ltd Net Profit Margin is 7.29% for FY-2025 , is above with its 5 year median of 6.91%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 16.4 10.7
Operating Profit Margin 21.47 17.93
Net Profit Margin 7.29 6.91
Q.5 Return on Asset of Tata Power Company Ltd?
Tata Power Company Ltd Return on Asset is 3.23%, which is above its 5 year historical median of 3.17%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Tata Power Company Ltd?
Tata Power Company Ltd Return on equity is 14.01% for FY-2025 , which is above its historical median of 14%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Tata Power Company Ltd?
Tata Power Company Ltd Return on capital employed is 12.54% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Tata Power Company Ltd?
Tata Power Company Ltd Cash conversion cycle is 1 days, below its historical median of 1 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.44 0.44
ROE 14.01 14
ROCE 12.54 12.54
Cash Conversion Cycle 1 days 1 days
Q.9 Debt to Equity ratio of Tata Power Company Ltd?
Tata Power Company Ltd Debt-to-Equity ratio is 1.62 , which is above with the industry average of 1.61 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Tata Power Company Ltd?
Tata Power Company Ltd Debt to cash flow from operations is 4.59 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Tata Power Company Ltd?
Promoters hold 46.86% of the Tata Power Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Tata Power Company Ltd vs industry peers?
Tata Power Company Ltd revenue CAGR is 17.58% , compared to the industry median CAGR of 26.03% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 65,478.2 45,895.2
Gross Profit 10,738.4 17,833.9
Operating Profit 13,907 23,369.5
Net Profit 4,775 9,665.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.44 0.31
ROE 14.01 20.12
ROCE 12.54 11.42
Cash Conversion Cycle (days) 1.27 72

Valuation & price assessment

Q.1 Stock return of Tata Power Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 19.3% 33.7% 27.8% 12.3%
Q.3 Valuation ratios of Tata Power Company Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 34.48 18.66 32.46
Price to Book 3.38 0.96 1.75
Price to Sales 2.02 0.71 6.05
EV to EBITDA 11.88 8.11 12.85

Check more companies

1. NTPC
2. Adani Power
3. Power Grid Corp
4. Adani Green Energy
5. Adani Energy Solut.
6. Tata Power
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×