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The Tata Power Company (TATAPOWER) Fair Value & Analysis

Utilities · IN · Market cap ₹1.2T

TT The Tata Power Company TATAPOWER · NSE
Price₹378.60
Fair Value₹315.22
Upside-16.7%
Quality40/100
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Expensive Growth
Thin margins · 6.0% net margin
High debt · negative free cash flow
0.67% dividend yield
Trails peers (2/13)
Narrow moat 41/100
Evidence: Medium Range ₹220.64 – ₹472.34 Share as image

Fair value as of: Jul 12, 2026

From 16 valuation models · updated 26 days ago

Fair value updated Jul 12, 2026, revised from ₹175.12 to ₹315.22 (+80.0%) since Jun 24, 2026. Share price +0.4% over the past month.

Below-average quality, and screening another 17% overvalued on our models.

What matters now

  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (₹220.64 to ₹472.34) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹479.69 ₹88.03 Fair Value ₹315.22 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range ₹88.03 – ₹479.69 · fair‑value band ₹220.64 – ₹472.34 · the ₹378.60 price screens above the ₹315.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

The Tata Power Company (TATAPOWER) currently trades at ₹378.60, while our model-based Fair Value estimate is ₹315.22, implying the stock looks roughly 16.7% overvalued today. We read business quality at 40/100 (below-average quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, The Tata Power Company generated revenue of ₹624B at a net margin of 6.0%. Revenue declined 12.8% year over year. It earns a return on equity of 11.3%. Net debt stands at ₹625B. Fundamentals as of Jul 12, 2026

Our scenario range runs from ₹220.64 (bear case) to ₹472.34 (bull case); at ₹378.60, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 11% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -59% fair-value upside, at -17%, TATAPOWER screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ₹108.63 ₹120.66 ₹201.09 76
ROIC Compounder ₹61.62 ₹98.99 ₹145.23 72
Gordon GGM ₹21.63 ₹47.23 ₹79.46 70
All 16 models by family
Earnings-Based
Graham-Dodd ₹79.74 ₹302.71 ₹409.83 54
Lynch FV ₹73.47 ₹104.96 ₹136.44 50
PEG = 1.0 ₹73.47 ₹104.96 ₹136.44 46
EPV ₹61.62 ₹98.99 ₹132.20 59
Dividend Discount
Gordon GGM ₹21.63 ₹47.23 ₹79.46 70
DDM Multi-Stage ₹21.63 ₹38.69 ₹49.22 61
Multiples
P/E Multiple ₹175.91 ₹234.54 ₹293.18 63
P/S Multiple ₹149.52 ₹199.36 ₹249.20 58
P/B Multiple ₹149.52 ₹199.36 ₹249.20 55
EV/EBIT ₹199.88 ₹316.55 ₹433.21 53
EV/EBITDA ₹249.46 ₹382.65 ₹515.85 54
EV/Revenue ₹85.81 ₹186.92 ₹288.03 43
Asset-Based
NCAV (Graham) ₹61.76 ₹82.75 ₹123.51 50
Economic Profit
Residual Income ₹108.63 ₹120.66 ₹201.09 76
ROIC Compounder ₹61.62 ₹98.99 ₹145.23 72
Growth Earnings
Growth-Adj P/E ₹130.33 ₹186.18 ₹242.03 68

Widest divergence: Multiples (₹199.36) versus Dividend Discount (₹38.69). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) ₹624B
Revenue growth (YoY) -12.8%
Net margin 6.0%
Return on equity 11.3%
Free cash flow −₹110B FY2026
P/E ratio 32.6
More key figures
Operating margin 11.6%
EPS (TTM) ₹11.71
Dividend yield 0.7%
EPS growth (YoY) -4.6%
Net debt ₹625B FY2026

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 31 · Market factors (momentum, volatility) 52

Profitability 28
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 10
Earnings quality: real cash, not paper profit
Fin. Strength 15
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 32
Distance to the 52-week high (market factor)
Net Issuance 89
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

The Tata Power Company 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.

Growth Quality 46/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹624B
Latest YoY
−4.7%
Avg. growth/yr (3Y)
+4.2%
Avg. growth/yr (5Y)
+13.8%
Avg. growth/yr (22Y)
+12.6%
Revenue +9.9%/yr
FY22 ₹428B
FY23 ₹551B
FY24 ₹614B
FY25 ₹655B
FY26 ₹624B
Net income +21.1%/yr
FY22 ₹17.4B
FY23 ₹33.4B
FY24 ₹37.0B
FY25 ₹39.7B
FY26 ₹37.5B

TATAPOWER screens 17% overvalued. Compare with Constellation Energy Corporation →

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

Peer Group

Utilities - Independent Power Producers · 79 stocks

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.

Quality Score 40 · Bottom 25%
Fair Value upside −17% · Below median
Return on equity (TTM) 11% · Above median
Return on assets 3% · Above median
Net margin (TTM) 6% · Below median
Operating margin (TTM) 12% · Below median
Revenue growth -13% · Below median
Dividend yield (TTM) 0.7% · Below median
Debt / equity 1.56× · Higher than 75% of peers

Valuation Multiples vs Utilities - Independent Power Producers median · lower = cheaper

P/E (TTM) 32.6× · Pricier than 75% of peers
P/B 3.09× · Pricier than 75% of peers
P/S (TTM) 1.95× · Pricier than median
EV/EBITDA 12.8× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 11 · sector 23
FUTURE 0 · sector 0
PAST 45 · sector 31
HEALTH 22 · sector 71
DIVIDEND 13 · sector 48

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Independent Power Producers stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Constellation Energy Corporation CEG $257.57 $89.08 -65%
Vistra Corp VST $158.86 $47.59 -70%
Adani Power Limited ADANIPOWER ₹218.45 ₹75.57 -65%
CGN Power Co 003816 ¥3.88 ¥3.13 -19%
NRG Energy, Inc NRG $137.90 $56.02 -59%
Gulf Development Public Company GULF 67.50 THB 40.44 THB -40%
Adani Energy Solutions Limited ADANIENSOL ₹1,730 ₹342.02 -80%
Talen Energy Corporation TLN $372.37 $44.67 -88%
Datang International Power Generation Co 601991 ¥5.80 ¥4.95 -15%
Power Assets Holdings 0006 HK$58.45 HK$31.90 -45%

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Frequently asked questions

Is The Tata Power Company (TATAPOWER) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ₹315.22 versus a price of ₹378.60, about −17% (overvalued).
What is the fair value of TATAPOWER?
Our model-based fair value for The Tata Power Company is ₹315.22 (as of Jul 12, 2026), built from audited fundamentals. The current price is ₹378.60.
What is the quality score of TATAPOWER?
The Tata Power Company has a Quality Score of 40/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of The Tata Power Company (TATAPOWER)?
The Tata Power Company reported trailing-twelve-month revenue of about ₹624B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of TATAPOWER?
The net profit margin of The Tata Power Company is about 6.0%, meaning it keeps roughly 6.0% of revenue as net income. Based on the latest reported figures.
Does The Tata Power Company pay a dividend?
The Tata Power Company currently shows a dividend yield of about 0.61% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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