Tata Power Co. (TATAPOWER)

FairStock Score: 43/100 — MIXED

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

Key Financials

Strengths

• Strong brand legacy and market presence in power sector
• Reasonable ROCE of 10.8% indicates efficient capital utilization
• Large market cap of Rs 1.2L crores shows scale and institutional presence

Concerns

• Significant profit decline of 25.1% indicates fundamental business stress
• Very low dividend yield of 0.6% fails to compensate for growth limitations
• Sales contraction of 9.4% suggests declining business momentum

AI Analysis

Tata Power Co. is a Slow Grower company — typically the kind mature investors look at for steady income through dividends. However, the current numbers paint a concerning picture. Trading at Rs 377.6 with a massive market cap of Rs 1.2 lakh crores, this integrated power utility is showing significant stress signals. The company's profit has declined by 25.1% while sales dropped 9.4%, indicating fundamental business challenges. With a P/E ratio of 31.9, investors are paying a premium price for a company that's actually shrinking. The ROCE of 10.8% shows the company is generating reasonable returns on capital, but the dividend yield of just 0.6% is disappointingly low for a slow grower. Typically, slow growers compensate for limited growth with attractive dividends, but Tata Power's yield barely covers inflation. The DhanIQ score of 0/10 reflects these multiple red flags. Analysis suggests this company is struggling with the fundamental challenges facing India's power sector, including regulatory pressures and changing energy dynamics. Data indicates that while Tata Power has a strong brand legacy, current financial metrics suggest dividend sustainability may be at risk given the declining profitability.

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