Tata Power Company Ltd (TPC) is India’s largest integrated power company with a presence throughout the entire power generation, transmission and distribution value chain. The company has a diversified portfolio of thermal, hydro, solar, wind and renewable energy projects. TPC is also one of the leading players in the Indian power trading business.
Businesses of Tata Power Company Ltd
- Thermal power: TPC has a total thermal power generation capacity of 10,527 MW. The company’s thermal power plants are located in various states across India.
- Hydro power: TPC has a total hydro power generation capacity of 3,340 MW. The company’s hydro power plants are located in the states of Maharashtra, Gujarat, Himachal Pradesh, Karnataka and Tamil Nadu.
- Solar power: TPC has a total solar power generation capacity of 462 MW. The company’s solar power plants are located in various states across India.
- Wind power: TPC has a total wind power generation capacity of 555 MW. The company’s wind power plants are located in the states of Tamil Nadu, Karnataka, Maharashtra and Gujarat.
- Renewable energy: TPC is committed to developing renewable energy sources. The company has a renewable energy portfolio of 38%, which is one of the highest among Indian power companies.
- Power trading: TPC is one of the leading players in the Indian power trading business. The company trades in both physical and financial power markets.
The Tata Power Company Ltd Overview
| Key Highlights | Value |
|---|---|
| Installed capacity | 14,384 MW |
| Transmission network | 1,959 km |
| Distribution network | 3,819 km |
| Renewable energy portfolio | 38% |
| Employee strength | over 28,000 |
The Tata Power Company Ltd Products
| Businesses | Details |
|---|---|
| Thermal power | TPC has a total thermal power generation capacity of 10,527 MW. The company’s thermal power plants are located in various states across India. |
| Hydro power | TPC has a total hydro power generation capacity of 3,340 MW. The company’s hydro power plants are located in the states of Maharashtra, Gujarat, Himachal Pradesh, Karnataka and Tamil Nadu. |
| Solar power | TPC has a total solar power generation capacity of 462 MW. The company’s solar power plants are located in various states across India. |
| Wind power | TPC has a total wind power generation capacity of 555 MW. The company’s wind power plants are located in the states of Tamil Nadu, Karnataka, Maharashtra and Gujarat. |
| Renewable energy | TPC is committed to developing renewable energy sources. The company has a renewable energy portfolio of 38%, which is one of the highest among Indian power companies. |
| Power trading | TPC is one of the leading players in the Indian power trading business. The company trades in both physical and financial power markets. |
The Tata Power Company Ltd Awards and Recognition
| Award/Recognition | Year |
|---|---|
| Power plant of the year | 2022 |
| Sustainable development | 2021 |
| Employee engagement | 2020 |
The Tata Power Company Ltd Fundamentals
| Fundamental | Value |
|---|---|
| Market Capitalization (₹) | 82,487.69 Crore |
| Revenue (₹) | 56,033 Crore (FY22) |
| EBITDA (₹) | 9,706 Crore (FY22) |
| EPS (₹) | 18.37 (FY22) |
| P/E Ratio | 14.22 |
| P/B Ratio | 3.22 |
| Dividend Yield | 3.38% |
| Debt/Equity Ratio | 0.73 |
| Book Value (₹) | 59.27 |
| Face Value (₹) | 1 |
| ROE (FY22) | 28.63% |
The Tata Power Company Ltd Revenue and Net Profit
| Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY22 | 56,033 | 5,193 |
| FY21 | 48,991 | 4,069 |
| FY20 | 50,750 | 2,892 |
| FY19 | 47,278 | 3,229 |
| FY18 | 46,337 | 2,773 |
The Tata Power Company Ltd Shareholding Patterns
| Shareholder Category | Percentage Shareholding |
|---|---|
| Promoters | 46.86% |
| Foreign Institutional Investors (FIIs) | 27.62% |
| Domestic Institutional Investors (DIIs) | 11.55% |
| Public Shareholding | 10.00% |
| Others | 3.97% |
The Tata Power Company Ltd Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Share Price Target (₹) |
|---|---|
| 2024 | 400 – 470 |
| 2025 | 510 – 550 |
| 2026 | 530 – 645 |
| 2027 | 560 – 720 |
| 2028 | 645 – 776 |
The Tata Power Company Ltd Share Price Target for 2024
The Tata Power Company Ltd share price target for 2024 is between ₹400 and ₹470.
The Tata Power Company Ltd Share Price Target for 2025
Share price targets for 2025 for Tata Power range from ₹510 to ₹550.
The Tata Power Company Ltd Share Price Target for 2026
Share price targets for Tata Power in 2026 range from ₹530 to ₹645.
The Tata Power Company Ltd Share Price Target for 2027
Share price targets for Tata Power in 2027 range from ₹560 to ₹720.
The Tata Power Company Ltd Share Price Target for 2028
Share price targets for Tata Power in 2028 range from ₹645 to ₹776.
Future Outlook of The Tata Power Company Ltd
Key factors driving TPC’s future growth:
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Accelerated Renewable Energy Expansion: TPC is aggressively expanding its renewable energy portfolio, with a target of 50 GW by 2030. This growth is expected to drive significant revenue and earnings growth for the company.
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Operational Efficiency Enhancements: TPC is continuously implementing initiatives to enhance operational efficiency, leading to cost savings and improved profitability. This will enable the company to remain competitive in the market and strengthen its margins.
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International Expansion and Diversification: TPC is expanding its international presence, particularly in Africa and Southeast Asia, which will diversify revenue streams and provide access to new growth markets. This expansion will not only increase the company’s market share but also mitigate risks associated with relying solely on the Indian market.
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Strong Financial Position: TPC has a solid financial position, with a healthy debt-equity ratio and a track record of profitability. This provides the company with the resources to pursue its growth strategies effectively and invest in new projects.
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Supportive Policy Environment: The Indian government’s continued support for renewable energy and sustainable development initiatives creates a favorable environment for TPC’s growth in this sector. Government policies and incentives are expected to further accelerate the adoption of renewable energy, benefiting TPC’s position as a leading renewable energy player.
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Risks Associated With Investing in The Tata Power Company Ltd
| Risk Factor | Description |
|---|---|
| Coal Price Volatility | Tata Power’s profitability is still partially dependent on thermal power generation, which relies on coal as a primary fuel source. Fluctuations in coal prices can significantly impact the company’s margins and overall profitability. |
| Regulatory Uncertainties | The power sector is subject to regulatory changes and policy shifts, which can have a substantial impact on Tata Power’s business operations and financial performance. Changes in renewable energy tariffs, subsidies, or grid connectivity regulations could affect the company’s revenue streams and profitability. |
| Intensifying Competition | The renewable energy sector is becoming increasingly competitive, with numerous players entering the market. Tata Power faces intense competition in terms of cost, innovation, and market share. Maintaining a competitive edge will require continuous innovation and cost optimization. |
| Dependence on Subsidies | Tata Power’s renewable energy business relies on government subsidies and incentives. Changes in these subsidies or their eligibility criteria could impact the company’s profitability and growth prospects. |
| Debt Burden | Tata Power has a relatively high debt-equity ratio, which could increase its financial risk and vulnerability to rising interest rates. Managing its debt obligations effectively will be crucial for long-term financial stability. |
| Technological Advancements | Rapid advancements in renewable energy technologies could disrupt existing market dynamics and potentially disadvantage Tata Power if it fails to adapt and adopt new technologies promptly. |
| Grid Integration Challenges | Integrating renewable energy sources into the grid can pose challenges due to their intermittent nature. Tata Power needs to address these integration challenges to ensure reliable and efficient power supply. |
| Environmental Regulations | Stringent environmental regulations and emission standards could increase Tata Power’s compliance costs and potentially affect its profitability. |
The Tata Power Company Ltd Competitors
| Rank | Competitor | Market Cap (₹ Crore) |
|---|---|---|
| 1 | Reliance Power Ltd | 1,35,952.68 |
| 2 | Adani Green Energy Ltd | 1,40,993.71 |
| 3 | Adani Power Ltd | 83,817.85 |
| 4 | NTPC Ltd | 1,25,481.15 |
| 5 | Torrent Power Ltd | 42,791.11 |
| 6 | CESC Ltd | 29,960.08 |
| 7 | Power Grid Corporation of India Ltd | 2,21,636.53 |
| 8 | India Power Corporation Ltd | 1,097.63 |
| 9 | GMR Infrastructure Ltd | 44,365.40 |
| 10 | JSW Energy Ltd | 21,955.27 |
The Tata Power Company Ltd Share Price FAQs
Q: What is the Tata Power Ltd share price target for 2024?
A: Share price targets for Tata Power in 2024 range from ₹400 to ₹470.
Q: What is the Tata Power Ltd share price target for 2025?
A: Share price targets for Tata Power in 2025 range from ₹510 to ₹550.
Q: What is the Tata Power Ltd share price target for 2026?
A: Share price targets for Tata Power in 2026 range from ₹530 to ₹645.
Q: What is the Tata Power Ltd share price target for 2027?
A: Share price targets for Tata Power in 2027 range from ₹560 to ₹720.
Q: What is the Tata Power Ltd share price target for 2028?
A: Share price targets for Tata Power in 2028 range from ₹645 to ₹776.
Q: Is Tata Power Ltd a good investment?
A: Tata Power Ltd is a leading power company with a strong track record and a promising future in the renewable energy sector. However, there are also potential risks to consider, such as coal price volatility and regulatory changes. Investors should carefully consider their risk tolerance and conduct thorough research before making any investment decisions.
DISCLAMER: We are not registered financial advisors. We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
