Please refer to important disclosures at the end of this report
Tata Power Ltd (TPL) is India’s largest integrated power company with a growing
international presence. The Company together with its subsidiaries and jointl
controlled entities has an installed gross generation capacity of 10496 MW and
a presence in all the segments of the power sector viz. Fuel Security and Logistics,
Generation (thermal, hydro, solar and wind), Transmission, Distribution and
Trading. Coal prices have risen in recent months, which have improved
profitability of coal mining investments for the company. There continues to be
significant delay in Supreme Court verdict on compensatory tariff and is expected
decision to be in favour of TPL. The Strategic Engineering Division (SED) of TPL is
looking to tap opportunities in domestic defense sector. The SED order backlog
presently stands at ~`1,450cr. Going ahead it will scout for orders like tactical
communication system and battle management system which are large size
orders. Management indicated that defense segment has asset light model with
decent ~25% EBITDA margin which presents lucrative opportunity. The working
capital cycle has shown a decline from 15days to 1day. The Company has been
maintaining a healthy dividend payout of 80.12% (Div Yield: 1.56%). Hence Buy.
CMP `83
Stock Info
Bloomberg Code
Shareholding Pattern (%)
Promoters 33.0
MF / Banks / Indian Fls 25.4
FII / NRIs / OCBs 26.6
Indian Public / Others 15.0
Abs. (%) 3m 1yr 3yr
Sensex 5.7 23.3 40.4
Tata Power 15.6 47.3 18.0
52 Week High / Low 84/55
Avg. Daily Volume 5,01,984
Market Cap (
cr) 22,531
BSE Sensex 28,352
Nifty 8,805
Face Value (
Reuters Code TTPW.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Tata Power Company
Others | Powe
February 14, 2017
Tata Power| Power
February 14, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Tata Power
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15