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Tata Power Company Limited (TATAPOWER) fair value: what the stock is really worth

As of Nov 2, 2026: fair value (intrinsic value) of Tata Power Company Limited stock ₹315, price ₹356, that is 11.4% below the price, quality 33 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

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Utilities IN · ISIN INE245A01021

TP Tata Power Company Limited logo Some data Nov 1, 2026

Tata Power Company Limited

TATAPOWER · NSE
Expensive, weak quality

Our calculation puts a fair price 11% below what the stock costs today.

Expensive Growth (revenue 5y +13.8 %/yr in INR)
Thin margins · 6.1% net margin (TTM)
0.7% dividend yield · Token dividend
Some data
Fair value ₹315.22 · Overvalued (−11.4%)
Quality 33/100
High debt
Negative free cash flow
Trails peers (3/13)
Narrow moat 42/100

Risks from the AI analysis

🚩Price drop: Revenue slip and leverage concerns

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

₹479.69 ₹116.34 Fair Value ₹315.22 Jul 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.

How to read this chart

60‑month range ₹116.34 – ₹479.69 · fair‑value band ₹220.64 – ₹409.77 · the ₹355.90 price screens above the ₹315.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 1, 2026.

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Company profile

The Tata Power Company Limited engages in the generation, transmission, distribution, and trading of electricity in India and internationally. It operates through four segments: Thermal & Hydro, Transmission & Distribution, Renewables, and Others.

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The company generates power from hydroelectric and thermal sources, such as coal, gas, and oil; and provides related ancillary services. It also engages in the operation of transmission and distribution networks; and sale of power to retail customers through distribution networks.

In addition, the company offers project management contracts and infrastructure management, and property development services, as well as rents oil tanks.

Further, it is involved in the generation of power from renewable energy sources, such as wind and solar; rooftop solar projects; electric vehicle charging stations; manufactures solar cells and modules; engineering, procurement, and construction; home automation solutions; and maintenance services.

Additionally, the company trades in power and coal; generates and distributes power; hydro pump storage, coal mining, trading, shipping, and related infra business; and provides smart meter, consultancy, networking solution, shipping and coal handling, logistics, and equipment business and related services, as well as infrastructure for electric vehicles.

As of March 31, 2026, the company had an installed generation capacity of 16,716 megawatt. The Tata Power Company Limited was founded in 1915 and is based in Mumbai, India.

Stock analysis

Tata Power Company Limited (TATAPOWER) currently trades at ₹355.90, while our model-based Fair Value estimate is ₹315.22, 11.4% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Growth Earnings group reads highest at a median of ₹175.12 per share, and 0 of the 16 models we run sit above the ₹355.90 price.

Bear case: the Economic Profit group reads lowest at ₹39.61, and 16 of the 16 models stay below the price. Data coverage for this calculation is medium.

Scenario range: ₹220.64 (bear) to ₹409.77 (bull), the price of ₹355.90 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 33/100 (below-average quality), in the Utilities sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

Tata Power Company Limited reported revenue of ₹624B in FY2026 versus ₹428B in FY2022, a compound +9.9%/yr. Reported net income was ₹37.5B in FY2026, compounding +21.1%/yr from FY2022.

Key figures

Market cap ₹1.1T (≈ $12.0B) Large · P/E ratio 29.5 · P/S ratio 2.45 · EPS (TTM) ₹12.06 · Dividend yield 0.7% · Net margin 6.1% · Return on equity 11.3% · Return on assets (EBIT) 8.9%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (medium confidence).

What moves the price

The share trades about 22% below its 52-week high and 6% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Utilities peers we cover trades at −47% fair-value upside, at −11%, TATAPOWER screens cheaper than that median.

Fair Value models

Bear ₹220.64 Fair Value ₹315.22 Bull ₹409.77
Price ₹355.90 · Downside -11.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹5.66 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income ₹103.05 ₹110.71 ₹129.75 76
EPV ₹20.71 ₹39.61 ₹55.57 70
ROIC Compounder ₹20.71 ₹39.61 ₹55.57 69
All 16 models by family
Earnings-Based
Graham-Dodd ₹79.74 ₹302.71 ₹409.83 64
Lynch FV ₹73.47 ₹104.96 ₹136.44 61
PEG = 1.0 ₹73.47 ₹104.96 ₹136.44 57
EPV ₹20.71 ₹39.61 ₹55.57 70
Dividend Discount
Gordon GGM ₹13.45 ₹25.17 ₹35.85 67
DDM Multi-Stage ₹13.45 ₹22.53 ₹26.78 67
Multiples
P/E Multiple ₹158.32 ₹211.09 ₹263.86 63
P/S Multiple ₹149.52 ₹199.36 ₹249.20 57
P/B Multiple ₹154.51 ₹206.01 ₹257.51 55
EV/EBIT ₹70.34 ₹141.53 ₹212.72 62
EV/EBITDA ₹81.84 ₹156.86 ₹231.88 64
EV/Revenue ₹29.53 ₹103.56 ₹177.60 48
Asset-Based
NCAV (Graham) ₹57.22 ₹76.68 ₹114.45 53
Economic Profit
Residual Income ₹103.05 ₹110.71 ₹129.75 76
ROIC Compounder ₹20.71 ₹39.61 ₹55.57 69
Growth Earnings
Growth-Adj P/E ₹122.58 ₹175.12 ₹227.65 67

The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.

Open the full fair value analysis →

Quality Score breakdown

Overall quality 33/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 28
How much profit the company makes from its sales and capital
Quality Growth 33
Are margins and returns getting better?
Cashflow 10
Do the profits arrive as real cash?
Financial strength 15
Debt, balance sheet and risk of trouble
Investment 30
Does it invest with discipline instead of growing at any price?
Low Volatility 92
How calm the share price moves, does not count
Price momentum 25
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 18
Distance to the 52-week high, does not count
New shares 89
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 46/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
−4.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.8%
Start year 2021 (pandemic). Over 10 years: +7.8% a year
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.6%
What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+28.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+28.2%
Dividend (yield on the price)0.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.28.2% vs 16.2%, picking up
Profit margin 2004 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.23% → 13%
Pace: the 5-year rate starts in 2021 (pandemic)

TATAPOWER screens overvalued: fair value 11% below the price. Compare with Constellation Energy Corporation →

Note from the team Oct 27, 2026
AI conclusion: The business draws strength from renewable capacity gains and data-center project pipelines yet remains limited by weak moat signals from negative free cash flow and high leverage in a regulated sector.
Main risk: Elevated leverage together with negative free cash flow risks limiting the ability to fund the expanding data-center, transmission and storage pipeline and thereby hitting project execution.
Tata Power's Q3 results showed revenue slipping four percent year on year even as profit after tax edged higher and renewables delivered sharp gains in execution and earnings. The stock has since drifted lower and now sits well below its recent peak amid concerns over leverage and near-term growth visibility. Will the expanding pipeline of data-center power, transmission and storage projects provide enough durable demand to offset these pressures, or will the mixed headline numbers continue to dominate sentiment?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Utilities - Independent Power Producers · 74 stocks

Beats the industry median on 3/13 measures
Overall it trails its industry peers.
Valuation
Quality Score 33 · Bottom 25%
Fair Value upside −11.4% · Below median
Profitability
Return on equity (12 months) 11.3% · Above median
Return on assets 2.9% · Below median
Net margin (12 months) 8.3% · Below median
Operating margin (12 months) 14.5% · Above median
Growth and dividend
Revenue growth (quarter YoY) 5.6% · Above median
Dividend yield (12 months) 0.7% · Bottom 25%
Balance sheet
Debt / equity 1.56× · Highest 25%

Valuation Multiplesvs Utilities - Independent Power Producers median · lower = cheaper

P/E (12 months) 29.5× · Priciest 25%
P/B 2.89× · Priciest 25%
P/S (12 months) 2.45× · Pricier than median
EV/EBITDA 16.8× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)18 · sector 22
FUTURE (revenue growth)28 · sector 12
PAST (return on equity)45 · sector 31
HEALTH (low debt)22 · sector 71
DIVIDEND (yield)14 · sector 60

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Tata Power Company Limited: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "Tata Power Company Limited Fair Value". https://www.fairvalue-calculator.com/stock/TATAPOWER

Frequently asked questions

Is Tata Power Company Limited (TATAPOWER) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of ₹315.22 versus a price of ₹355.90, about 11% lower (overvalued).
What is the fair value of TATAPOWER?
Our model-based fair value for Tata Power Company Limited is ₹315.22 (as of Nov 1, 2026), built from audited fundamentals. The current price: ₹355.90.
What is the quality score of TATAPOWER?
Tata Power Company Limited has a Quality Score of 33/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Tata Power Company Limited (TATAPOWER)?
Our model-based price target is the fair value of ₹315.22 (as of Nov 1, 2026) from 16 valuation models. Cautious scenario ₹220.64, optimistic scenario ₹409.77. It is a calculation from audited fundamentals, not an analyst target.
What is the Tata Power Company Limited stock forecast for 2026?
Our models put fair value at ₹315.22, about 11% lower versus a price of ₹355.90 (overvalued). Cautious scenario ₹220.64, optimistic scenario ₹409.77. The calculation is refreshed regularly with new filings.
What is the revenue of Tata Power Company Limited (TATAPOWER)?
Tata Power Company Limited reported trailing-twelve-month revenue of about ₹634B (latest available figure, as of Nov 1, 2026).
Does Tata Power Company Limited pay a dividend?
Tata Power Company Limited currently shows a dividend yield of 0.70% relative to its recent price (as of Nov 1, 2026).
What is the intrinsic value of Tata Power Company Limited (TATAPOWER)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Tata Power Company Limited it is ₹315.22 per share (as of Nov 1, 2026), against a price of ₹355.90. It is the blended result of 16 valuation models (cash flow, earnings, asset, dividend).
Is Tata Power Company Limited stock overvalued or undervalued in 2026?
As of Nov 1, 2026, TATAPOWER trades above its calculated fair value: price ₹355.90, fair value ₹315.22, a gap of about −11% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TATAPOWER?
No. The price is what the market pays today (₹355.90); the fair value is what the company's own numbers justify (₹315.22). For Tata Power Company Limited the two are ₹40.68 per share apart. That gap is exactly why we show both numbers side by side.
How much is Tata Power Company Limited worth?
The market values Tata Power Company Limited at about ₹1.1T (market capitalisation, as of Nov 1, 2026). Per share that is ₹355.90; our models calculate a fair value of ₹315.22 per share.
What do the bullish and bearish scenarios say about TATAPOWER?
Our models span a range for Tata Power Company Limited: cautious scenario ₹220.64, base ₹315.22, optimistic ₹409.77 per share (as of Nov 1, 2026, price ₹355.90). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TATAPOWER?
Tata Power Company Limited trades at a price-to-earnings ratio of 29.5 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹315.22 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 30.4. Other multiples: P/B 2.9, P/S 2.5, EV/EBITDA 16.8.
How solid is the balance sheet of Tata Power Company Limited (TATAPOWER)?
Balance-sheet figures for Tata Power Company Limited (as of Nov 1, 2026): return on equity 11.3%, debt of 1.56 per unit of equity. They feed the Quality Score of 33/100, which measures business quality independently of the share price.
How far is TATAPOWER from its 52-week high?
Tata Power Company Limited trades at ₹355.90, about 22% below its 52-week high of ₹458.96 and 6% above the low of ₹335.00 (as of Nov 2, 2026). Distance from the high says nothing about value: that is what the fair value of ₹315.22 is for.
Which stocks are comparable to Tata Power Company Limited?
From the same area (Utilities) we also value Constellation Energy Corporation, Vistra Corp, Adani Power Limited, CGN Power Co, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Tata Power Company Limited stock attractive at the current price?
The data as of Nov 1, 2026: price ₹355.90, calculated fair value ₹315.22 (−11%), Quality Score 33/100, from 16 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TATAPOWER calculated?
We run Tata Power Company Limited through 16 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹315.22, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.2 % above its aggregate fair value. Tata Power Company Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Tata Power Company Limited (TATAPOWER)?
The closing price on Nov 2, 2026 was ₹355.90. Our model-based fair value is ₹315.22, about 11% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Tata Power Company Limited right now?
A fairly wide model range (₹220.64 to ₹409.77) leaves room in how you read the outcome. The price sits in the upper half of our model range, so the margin of safety is thin. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Where does the earnings growth of Tata Power Company Limited (TATAPOWER) come from?
Earnings per share at Tata Power Company Limited grew +22.6 % a year from 2015 to 2026. Broken into its drivers: revenue per share +8.2 %, EBIT margin −3.1 %, tax rate +5.1 %, residual (interest, one-offs) +11.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of Tata Power Company Limited

How large is the market capitalisation of Tata Power Company Limited (TATAPOWER)?
The market capitalisation of Tata Power Company Limited is ₹1.1T (≈ $12.0B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Tata Power Company Limited (TATAPOWER)?
The price-to-sales ratio of Tata Power Company Limited is 2.45 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Tata Power Company Limited (TATAPOWER)?
Earnings per share at Tata Power Company Limited are ₹12.06 (price ÷ EPS = P/E 29.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Tata Power Company Limited (TATAPOWER)?
The dividend yield of Tata Power Company Limited is 0.7% (payout 20.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Tata Power Company Limited (TATAPOWER)?
The net margin of Tata Power Company Limited is 6.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Tata Power Company Limited (TATAPOWER)?
The return on equity (ROE) of Tata Power Company Limited is 11.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Tata Power Company Limited (TATAPOWER)?
On an EBIT basis the return on assets of Tata Power Company Limited is 8.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Tata Power Company Limited (TATAPOWER)?
The operating margin of Tata Power Company Limited is 14.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Tata Power Company Limited (TATAPOWER)?
Revenue at Tata Power Company Limited is growing +5.6% versus a year earlier (3y avg +4.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Tata Power Company Limited (TATAPOWER)?
Earnings per share at Tata Power Company Limited are growing +10.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Tata Power Company Limited (TATAPOWER) generate?
The free cash flow of Tata Power Company Limited is −₹110B (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Tata Power Company Limited (TATAPOWER) carry?
The net debt of Tata Power Company Limited is ₹625B (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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