Tata Power Co. (TATAPOWER)

FairStock Score: 44/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Tata Power as an integrated utility with scale and a long history, but I must ask whether the current price offers value. The market cap is ₹1.22 lakh Cr, promoter holding is 46.86%, and the 5-year revenue CAGR of 17.58% shows it can expand over time. However, latest sales growth is only 1.28%, and profit growth has fallen 46.67%, so the recent trajectory is weak. As a Buffett-style investor, I want a durable moat and consistent cash generation. Here ROE is 10.59% and ROCE is 10.81%, which are modest. Debt/equity at 1.68 is high for a capital-intensive utility, and free cash flow is negative ₹2,756 Cr. The Altman Z-Score of 1.38 flags financial stress, while the Piotroski F-Score of 6/9 is middling. Valuation is not Graham-like: P/E is 31.65, P/B is 3.09, and the Graham Number is only ₹173.15. With the stock at ₹382.05, the margin of safety is -118.04%, meaning I am paying a large premium to intrinsic value. EV/EBITDA at 296.86 is extreme on the supplied figures, suggesting EBITDA is very low relative to enterprise value or the data needs caution. Dividend yield of 0.65% gives little income cushion. The latest quarter still shows sales of ₹13,948 Cr and net profit of ₹1,194 Cr, so the business is profitable, but I would not pay 31.65 times earnings for a utility with negative FCF and high leverage. I would prefer to wait for better cash flows, lower debt, and a wider margin of safety. This looks like a slow grower, not a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer