Tata Power Stock Price Analysis and Quick Research Report. Is Tata Power an attractive stock to invest in?
Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.
Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements.
Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Tata Power.
-
PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Tata Power has a PE ratio of 52.5377172843555 which is high and comparatively overvalued.
-
Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Tata Power has ROA of 6.075% which is a bad sign for future performance. (Higher values are always desirable.)
-
Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Tata Power has a Current ratio of 0.4758.
-
Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Tata Power has a ROE of 18.3683%. (Higher is better)
-
Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Tata Power has a Debt to Equity ratio of 0.9259 which means that the company has low proportion of debt in its capital.
-
Sales growth: Tata Power has reported revenue growth of 11.2778% which is poor in relation to its growth and performance.
-
Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Tata Power for the current financial year is 24.4986010383087%.
-
Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Tata Power is Rs 2.25 and the yield is 0.5844%.
-
Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Tata Power is Rs 7.3176. The higher the EPS, the better it is for investors.
One can find all the Financial Ratios of Tata Power in Ticker for free. Also, one can get the intrinsic value of Tata Power by using Valuation Calculators, which are available with a Finology ONE subscription.
Tata Power FAQs
Q1. What is Tata Power share price today?
Ans: The current share price of Tata Power is Rs 384.45.
Q2. What is the market capitalisation of Tata Power?
Ans: Tata Power has a market capitalisation of Rs 122844.828884415 Cr., calculated based on its latest share price.
Q3. What are the P/E and P/B ratios of Tata Power?
Ans: The PE ratio of Tata Power is 52.5377172843555 and the P/B ratio of Tata Power is 6.51446755729071, showing how the stock is valued against its earnings and book value.
Q4. What is the 52-week high and low of Tata Power share?
Ans: The 52-week high share price of Tata Power is Rs 447.7, and the 52-week low share price of Tata Power is Rs 326.35.
Q5. Does Tata Power pay dividends?
Ans: Currently, Tata Power pays dividends. Dividend yield of Tata Power is around 0.5844%.
Q6. What are the face value and book value of Tata Power shares?
Ans: The face value of Tata Power shares is Rs 1, while the book value per share of Tata Power is around Rs 59.0148. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.
Q7. What is the debt of Tata Power?
Ans: Tata Power has a total debt of Rs 16971.99 Cr., which affects investor sentiment and financial stability.
Q8. What are the ROE and ROCE of Tata Power?
Ans: The ROE of Tata Power is 18.3683% and ROCE of Tata Power is 16.1659%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.
Q9. Is Tata Power a good buy for the long term?
Ans: The Tata Power long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.
Q10. Is Tata Power undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Tata Power appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.
Q11. How to check Tata Power’s financials?
Ans: You can review Tata Power’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.